Tax Justice Network Africa and ActionAid recently published a report about corporate tax incentives in East-Africa, entitled "Still racing toward the bottom?"
Corporate tax incentives are used to attract foreign investments, which at a first glace are good for the local economy; higher employment rates, more export, influx of foreign money, etc. However, because the corporations are able to play the countries against each other, they are embroiled in a constant race to the bottom, which is costing the region billions of dollars.
In this report, TJN-A and ActionAid take a closer look at the current situation in Tanzania, Kenya, Uganda, Rwanda and Burundi. Based on this data they come to the conclusion that tax incentives do more harm than good and that reforms need to be implemented in order to reveal the real costs of this practice. To conclude they make several recommendations which should improve the current situation.
Download the full report here,
or visit the website of our local partner in Uganda, SEATINI: