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Post Reform Augmentation of Tax Revenue for Development Financing in Uganda

Rogers Matte


For over two decades, Uganda has implemented tax reforms with a view to register increasing revenue outturns, and a self-sustaining economy in the delivery of public services. This paper assesses Uganda’s tax revenue mobilization effectiveness, and identifies strategies for responding to existing challenges. In particular, it identifies key developments made over the past to increasing tax revenue collections and broadening of the tax; and assesses the magnitude of change possible to increase revenue and broaden the tax base in light of the demands of the second national development plan.  The assessment has found that responsiveness of tax to changes in GDP for Uganda for the period 1991/92 to 2014/15 has been 1.11 meaning that a rise in nominal GDP by 1percent leads to a revenue increase of 11percent. There has been a significant improvement in this responsiveness over the NDPI period. The paper outlines distinguished strategies for reducing tax evasion from those for growing the tax bases. These recommendations require effort beyond URA and Ministry of Finance, Planning and Economic development in order to address administrative, political economy and other challenges faces in Uganda’s tax revenue mobilization efforts.

KEYWORDS: Plan Financing Needs, Tax Buoyancy, Tax Revenue Mobilization Strategies.

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