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Thursday, November 09, 2017 

Uganda trails in EAC revenue mobilization

Musa Mayanja Lwanga an Independent consultant


KAMPALA, UGANDA- A New report from the Civil Society Budget Advocacy Group (CSBAG) reveals that Uganda is lagging behind in Revenue mobilization amongst the EAC partner states.

The report attributes the country’s poor performance in revenue mobilization on the high rate of Tax evasion and inefficiencies from URA to collect revenue especially at Local Governments level.

Presenting the report titled Widening Uganda’s Tax Base: What’s at stake and what should Government Do?  In Kampala, Musa Mayanja Lwanga an Independent consultant said Uganda tax contribution to the country’s Gross Domestic Product or popularly known as the Tax to GDP ratio is declining.

“Uganda’s tax to GDP ratio stands at between 10-12% which is below our neighbors. Rwanda’s Tax to GDP ratio contribution is at 14%, Tanzania 12.4 and Kenya 15.5%. The government should strive to see that there are mechanisms to support revenue mobilization,” said Lwanga.

Lwanga said the government should phase out the habit of offering tax holidays to multinational companies.

“What is required is to improve on the environment under which investors operate,” stressed Lwanga.

Discussing the report findings, Dr Fred Muhumuza advised the government to come up with policies that can compel people in the informal sector to pay taxes to Government.

He observed that 40 % of the country’s GDP is made up of people in the informal sector and majority being in the Agriculture sector.

 “There is no single country which can develop when majority of its population is in the informal sector. Let the Government find a way of transforming those people into the formal sector,” said Muhumuza.

By SAMUEL NABWIISO, Thursday, November 09th, 2017