Sustainable development requires higher domestic revenue effort

Christina Malmberg Calvo

What you need to know:

Bad economy. The bad economy at the time was characterised by rising inflation that hit 30.5 per cent in October 2011 causing the Central Bank to raise interest rates possibly faster than was appropriate

Less than one million people and about 40,000 firms are registered as taxpayers in Uganda. That is less than 7 per cent of the total working age population, and less than 10 per cent of firms with a fixed location, respectively. While this is low on both scores, it represents a significant improvement over the last couple of years thanks to the enormous efforts by Uganda Revenue Authority (URA) to improve tax administration. A large proportion of persons and firms remain outside the tax bracket, however.
Some households are too poor to pay taxes, and many small businesses operate in the informal economy and are hard-to-reach. That said, many people and firms deliberately evade taxes or are granted generous exceptions. This is something that should be addressed right away.


You're all set to enjoy unlimited Prime content.