Uganda is a country with a very young population – the vast majority are below the age of 18, and with an overwhelming percentage of people living below the poverty line of USD 1.9 (UGX 6,175). It is therefore extremely urgent to rethink the fiscal system, i.e. who contributes to the revenue basket and who benefits from the collected revenues. The fact that the burden of taxation is carried mainly by the poor, while the rich enjoy the incentives, cannot be ignored. Uganda remains highly dependent on revenues from import taxes making the country vulnerable to shocks and curtailing the domestic revenue mobilization sustainability in the long-run. Presence of valuable minerals and the heavy investment in infrastructure show that Uganda has a potential to further develop its domestic revenue base.

Check out the Fair Tax Monitor Uganda Report 2018