The announcement was simple yet seismic: the familiar Tax Identification Number, known to most as the TIN, is being retired, and in its place rises a new national symbol of financial identity, the NIN, or National Identification Number. Imagine a small market in central Kampala where a trader, her ledger folded under one arm, and a university graduate, CV in hand, both realize that the same piece of plastic that confirms their name and birth now opens the door to formal banking, business registration, and tax recognition. That small, almost fairy-tale moment, the card that binds a citizen to the state, captures the spirit of Uganda’s reform: identity given purpose, invisibility turned into access.
The rationale for this reform is deeply practical. According to NIRA, approximately 27.4 million Ugandans have been registered and assigned NINs out of a census-estimated population of 45.9 million. In parallel, URA’s taxpayer register shows just under 4.9 million taxpayers as of 2024/25, leaving millions of economic actors unregistered and untaxed. The gap between national identity and tax registration represents lost revenue, weak enforcement, and an uneven sense of civic inclusion. By linking NIN to tax identity, Uganda aims to unify its registries, reduce duplication, and bring into view those who operate in the informal economy yet generate value and should carry contribution responsibilities. The transition signals readiness for a smarter, more transparent, and inclusive tax system one that recognizes every citizen, formal or informal, as part of the country’s economic heartbeat.
Globally, this is not an untested idea. India’s Aadhaar system, for example, anchors digital identities to welfare, banking, and tax access. Countries like Kenya and Rwanda have used their national IDs to broaden tax bases and formalize economies. Research by the World Bank shows that when identity systems enable inter-agency data sharing, linking tax, banking, property and employment, revenue administrations become markedly more effective. Yet the key lesson is that identity is an enabler, not a silver bullet: systems must be well-designed, inclusive, and grounded in service delivery.
In Uganda’s case, the promise is significant. With 27 million NIN registrations already live, URA inherits a vastly improved base from which to grow compliance. If even a modest portion of previously invisible economic actors become visible taxpayers, the aggregate effect could boost revenue without increasing nominal tax rates. URA’s 2024/25 performance offers encouragement, as the agency collected UGX 31.63 trillion in tax revenue, surpassing its target by UGX 262 billion, and recorded a tax-to-GDP ratio of around 14.5 per cent. Given regional peers like Kenya and Rwanda hover closer to 15 –17 per cent, the potential for uplift is real.
Nonetheless, the reform carries challenges. First, registration coverage gaps persist as some 18 million Ugandans remain unregistered for NIN, many in remote regions. Without their enrolment, the tax system cannot capture the full reach.
Second, integration of large databases, especially the multiple legacy registers, mobile money platforms, and employment records, presents a complex task. Mismatches or exclusion errors risk undermining public trust.
Third, data privacy and security must be upfront. Putting economic, biometric, and identity data under one roof increases the stakes. Citizens must feel the system protects them, not surveils them. Finally, behavioral change is crucial. Government must know that if citizens view taxation as punitive rather than contributory, registration alone will not translate into willingness to comply.
Still, if executed well, the benefits will go beyond revenue. Aligning identity with tax strengthens fairness. The person who holds a NIN but does not contribute becomes visible, and the system sends a clear message that participation is the norm, not option.
Administrative simplicity will improve in a way that we shall have fewer forms, fewer numbers, fewer separate records. Businesses will benefit from streamlined registration and clearer tax obligations. In the long term, the data architecture enables better policy design, government knowing who is contributing, where, and how much. This leads to more targeted services, smarter public spending, and enhanced accountability.
Looking ahead, the rollout must be managed with care. NIRA’s recent mass-registration exercise demonstrates some good momentum. More than 9.1 million Ugandans registered within two months, including some 800,000 children. URA’s part must align its systems to accept the NIN as the primary tax identifier, outreach must target informal sector participants, and compliance mechanisms must adapt to this new identity-based world.
A key complementary focus must be taxpayer education. When individuals understand their NIN is their tax gateway, they are more likely to engage positively rather than resist.
This shift is, at heart, a story of inclusion as much as it is of revenue. When a young woman in a rural village receives her NIN and knows it gives her access not only to a national ID but to business registration, bank accounts, and social services, she feels seen, she feels part of the nation’s economic fabric. That small sense of belonging fuels voluntary compliance, which in turn drives revenue, which then funds better services. The fairy-tale image is apt, a single card, a single number, unlocking multiple doors of opportunity and responsibility.
Here’s my call to action: every employer must ensure staff records are aligned with NINs, every business owner should verify directors and shareholders via the national register, and every Ugandan should treat their NIN as more than identity, as the gateway into formal economic life. The reform is not about adding burdens; it’s about widening participation and strengthening the social contract.
This is a pivotal moment that blends the poetic and the practical. The card in a mother’s purse, the ID in a student’s wallet, the number on a trader’s receipt, they will no longer be mere tokens of identity but threads in the fabric of Uganda’s fiscal future. By linking tax to identity, Uganda is not just changing a code; it is rewriting a national story, one where visibility replaces invisibility and inclusion replaces exclusion. For this to endure, the state must move faster than skepticism, secure the data it holds, and make compliance a service, not a struggle. Done right, the NIN will stand as more than an administrative number. It will be the small card that finally makes every Ugandan count, and every contribution matter.
The writer is a chartered Accountant and Tax advisor