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EPRCseries63

Tax Evasion and Widening the Tax Base in Uganda

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  • File Details
  • Size: 25MB
  • Creator / Author: Joan Addedis
  • Resource Type: Africa Capacity Report
  • # Download: 254
  • Access: Open to Download

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EPRCseries63.pdf
Basic Information
Creator / Author
Sennoga, Edward, Matovu, John M, Twimukye, Evarist
Source / Publisher
Economic Policy Research Centre (EPRC)
Resource Type
Geographic & Audience Details
Classification & Domains
Subject
Taxation
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Abstract

Uganda still lags way behind in its tax collections at the domestic level. For most of the commodities the tax collection effort is not more than 5 percent relative to the statutory rate of 18 percent. This results into a situation where the government has to rely a lot on foreign financing. From the analysis, there is a lot of improvement where URA can be able to increase its tax effort. This could be achieved by targeting commodities that are under-taxed and excluding food items for equity purposes. Increasing domestic tax collection would also result into less overreliance on taxing a few commodities especially fuel which is interlinked with a lot of other sectors and could indeed harm growth in the long-run. We also find that the tax effort on imports is sufficient. However, import duties on fuel remain very high and this could be a symptom of the poor domestic tax collection.
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Keywords

Economic Growth, Tax Evasion
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