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 Progressivity
  0
• Personal Income Tax
  4
• Wealth Taxes
  3
• Value Added Tax/Sales Tax
  10
• Trade taxes
  10
• Presumptive/Turnover Tax
  7
• Corporate Income Tax
  10

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 Revenues
  9
• Revenues from Extractive Industries
  4
• Tax Payers
  9

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).. 

• Organization
  9
• Administration
  10
• Resources
  3
• Oversight
  9

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.

• Agriculture
  3
• Education
  3
• Healthcare
  5

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 Transparency
  8
• Information Availability on Companies
  3
• Audit
  9
• Budget Documentation
  6
• Citizens’ Engagement
  8

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). 

• Governance
  2
• Transparency
  5

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 Progressivity
  0
• Personal Income Tax
  4
• Wealth Taxes
  3
• Value Added Tax/Sales Tax
  10
• Trade taxes
  10
• Presumptive/Turnover Tax
  7
• Corporate Income Tax
  10

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 Revenues
  9
• Revenues from Extractive Industries
  4
• Tax Payers
  9

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)..

• Organization
  9
• Administration
  10
• Resources
  3
• Oversight
  9

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.

• Agriculture
  3
• Education
  5
• Healthcare
  3

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 Transparency
  8
• Information Availability on Companies
  3
• Audit
  9
• Budget Documentation
  6
• Citizens’ Engagement
  8

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).

• Governance
  2
• Transparency
  5