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UGANDA
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.Read the full country report here: Fair Tax Monitor Uganda Report 2018

- 2018
- 2015
- 2016
Detail view
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PROGRESSIVE TAX SYSTEM6
Uganda's VAT law has been reformed and as a result, a number of exemptions was removed, which is a welcome step towards simplifying the system. However, certain essential goods are now taxes with a regular VAT rate, whereas other, luxurious, goods, enjoy a lower rate, which does not contribute to the progressivity of the tax system. Uganda is also very dependent on the revenues from import and export taxes, which makes it vulnerable to external shocks.
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Overall Progressivity0
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Personal Income Tax4
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Wealth Taxes3
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Value Added Tax/Sales Tax10
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Trade taxes10
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Presumptive/Turnover Tax7
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Corporate Income Tax10
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SUFFICIENT REVENUES7
Uganda's tax revenue stagnated between 10 and 12% of GDP. The growing informal sector (accounting for almost 36% of the economy in the central region alone), excessive tax exemptions, unaccounted financial outflows (capital flight and illicit flows), alongside the tax administration gaps have contributed to low revenue collections.
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Tax Revenues9
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Revenues from Extractive Industries4
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Tax Payers9
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EFFECTIVE TAX ADMINISTRATION8
Uganda's effort to digitalize the tax administration is a driving factor to improving tax compliance. As a result, the tax payers' register has grown considerably in the past years. This has however created more pressure on the administration as the number of tax officers has not increased accordingly. Although the tax authority has seen an important improvements, the collected revenues are still far from sufficient (only 10 - 12% of GDP)..
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Organization9
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Administration10
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Resources3
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Oversight9
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PRO-POOR PUBLIC SPENDING4
The government of Uganda has shifted public spending priorities in favour of infrastructural development, which poses a risk to already low investments into healthcare and education. Uganda thus does not meet the international standards for public spending on healthcare and education.
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Agriculture3
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Education3
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Healthcare5
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ACCOUNTABLE PUBLIC FINANCES7
Tax authorities have begun to publish information through media and tax hubs, although the quality, integrity and relevance of the data is questionable. While such information could be important to ensure that the authorities are held accountable, the public remains disempowered to take any relevant action.
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Tax System Transparency8
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Information Availability on Companies3
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Audit9
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Budget Documentation6
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Citizens’ Engagement8
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WELL GOVERNED TAX EXEMPTIONS4
Uganda seem to be on the right path in creating a transparent framework for managing the tax exemptions. Discretionary exemptions were abolished in 1996 and information about the beneficiary companies and lost revenues is published. However, Uganda's revenue forgone to tax exemptions remains high (2% of GDP in 2013).
-
Governance2
-
Transparency5
-
-
PROGRESSIVE TAX SYSTEM7
Uganda's VAT law has been reformed and as a result, a number of exemptions was removed, which is a welcome step towards simplifying the system. However, certain essential goods are now taxes with a regular VAT rate, whereas other, luxurious, goods, enjoy a lower rate, which does not contribute to the progressivity of the tax system. Uganda is also very dependent on the revenues from import and export taxes, which makes it vulnerable to external shocks.
-
Overall Progressivity6
-
Personal Income Tax4
-
Wealth Taxes5
-
Value Added Tax/Sales Tax6
-
Trade taxes5
-
Presumptive/Turnover Tax8
-
Corporate Income Tax
-
-
SUFFICIENT REVENUES6
Uganda's tax revenue stagnated between 10 and 12% of GDP. The growing informal sector (accounting for almost 36% of the economy in the central region alone), excessive tax exemptions, unaccounted financial outflows (capital flight and illicit flows), alongside the tax administration gaps have contributed to low revenue collections.
-
Tax Revenues8
-
Revenues from Extractive Industries5
-
Tax Payers5
-
-
EFFECTIVE TAX ADMINISTRATION8
Uganda's effort to digitalize the tax administration is a driving factor to improving tax compliance. As a result, the tax payers' register has grown considerably in the past years. This has however created more pressure on the administration as the number of tax officers has not increased accordingly. Although the tax authority has seen an important improvements, the collected revenues are still far from sufficient (only 10 - 12% of GDP)..
-
Organization10
-
Administration10
-
Resources7
-
Oversight10
-
-
PRO-POOR PUBLIC SPENDING4
The government of Uganda has shifted public spending priorities in favour of infrastructural development, which poses a risk to already low investments into healthcare and education. Uganda thus does not meet the international standards for public spending on healthcare and education.
-
Agriculture10
-
Education3
-
Healthcare0
-
-
ACCOUNTABLE PUBLIC FINANCES3
Tax authorities have begun to publish information through media and tax hubs, although the quality, integrity and relevance of the data is questionable. While such information could be important to ensure that the authorities are held accountable, the public remains disempowered to take any relevant action.
-
Tax System Transparency7
-
Information Availability on Companies0
-
Audit3
-
Budget Documentation5
-
Citizens’ Engagement3
-
-
WELL GOVERNED TAX EXEMPTIONS7
Uganda seem to be on the right path in creating a transparent framework for managing the tax exemptions. Discretionary exemptions were abolished in 1996 and information about the beneficiary companies and lost revenues is published. However, Uganda's revenue forgone to tax exemptions remains high (2% of GDP in 2013).
-
Governance6
-
Transparency8
-
-
PROGRESSIVE TAX SYSTEM6
Uganda's VAT law has been reformed and as a result, a number of exemptions was removed, which is a welcome step towards simplifying the system. However, certain essential goods are now taxes with a regular VAT rate, whereas other, luxurious, goods, enjoy a lower rate, which does not contribute to the progressivity of the tax system. Uganda is also very dependent on the revenues from import and export taxes, which makes it vulnerable to external shocks.
-
Overall Progressivity0
-
Personal Income Tax4
-
Wealth Taxes3
-
Value Added Tax/Sales Tax10
-
Trade taxes10
-
Presumptive/Turnover Tax7
-
Corporate Income Tax10
-
-
SUFFICIENT REVENUES7
Uganda's tax revenue stagnated between 10 and 12% of GDP. The growing informal sector (accounting for almost 36% of the economy in the central region alone), excessive tax exemptions, unaccounted financial outflows (capital flight and illicit flows), alongside the tax administration gaps have contributed to low revenue collections.
-
Tax Revenues9
-
Revenues from Extractive Industries4
-
Tax Payers9
-
-
EFFECTIVE TAX ADMINISTRATION8
Uganda's effort to digitalize the tax administration is a driving factor to improving tax compliance. As a result, the tax payers' register has grown considerably in the past years. This has however created more pressure on the administration as the number of tax officers has not increased accordingly. Although the tax authority has seen an important improvements, the collected revenues are still far from sufficient (only 10 - 12% of GDP)..
-
Organization9
-
Administration10
-
Resources3
-
Oversight9
-
-
PRO-POOR PUBLIC SPENDING4
The government of Uganda has shifted public spending priorities in favour of infrastructural development, which poses a risk to already low investments into healthcare and education. Uganda thus does not meet the international standards for public spending on healthcare and education.
-
Agriculture3
-
Education5
-
Healthcare3
-
-
ACCOUNTABLE PUBLIC FINANCES7
Tax authorities have begun to publish information through media and tax hubs, although the quality, integrity and relevance of the data is questionable. While such information could be important to ensure that the authorities are held accountable, the public remains disempowered to take any relevant action.
-
Tax System Transparency8
-
Information Availability on Companies3
-
Audit9
-
Budget Documentation6
-
Citizens’ Engagement8
-
-
WELL GOVERNED TAX EXEMPTIONS4
Uganda seem to be on the right path in creating a transparent framework for managing the tax exemptions. Discretionary exemptions were abolished in 1996 and information about the beneficiary companies and lost revenues is published. However, Uganda's revenue forgone to tax exemptions remains high (2% of GDP in 2013).
-
Governance2
-
Transparency5
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