Tax Reforms In Uganda: Missed Opportunities And Prospects For Economic Development

ABSTRACT

This study is based on examination of the different Tax Reforms in Uganda. The study was guided by current position of taxes in Uganda, different tax reforms in Uganda and national legal and institutional framework for tax refom1s in Uganda. The study was guided by a doctrinal methodology based on relevant written legal sources such as text books, journals, reports, articles and legislations, internet sources on the subject as well as case laws in Uganda, regionally focusing on East Africa and international instruments. The study scores that canons of taxation include Canon of equality or ability, Canon of certainty, Canon of convenience and Canon of Economy. The study further provides for the different types of taxes used in Uganda like Personal Income Tax, Business Income Tax, Value Added Tax, although tax administration in the country comes over with challenges like corruption, inadequate information on taxpayers, Ineffective tax policies among others. The study further delves into examination of the different tax reforms in Uganda and these included URA Tax reforms URA Tax reforms, reforms in the Income Tax, Reforms in the Import Duty. The study established that the Constitution is the supreme law of the land giving binding force on all authorities and persons throughout Uganda where Article 152, (I) vests power to impose taxes in Parliament and empowers it in chapter 3 to make laws to establish tax tribunals for the purposes of settling tax disputes followed by Uganda Revenue Authority Act cap 196, Income Tax Act (Cap 340), Value Added Tax (Cap 349), Tax Procedures Code Act, 2014, The Local Government Act (Cap 243) among others. These are also backed up by the institutional framework like the Ministry of Finance, Planning and Economic Development (MoFPED), the Parliament of the Republic of Uganda, the Local Government Finance Commission (LGFC), the Ministry of Trade, Industry and Cooperatives. The study recommends implementation of reforms to enhance non-tax revenue collection, recording and management and that URA should put more emphasis on performance objectives through reference to experiences in several countries have demonstrated that public institutions that boast an outcome-oriented and mission-driven culture tend to perform better. The study concludes that although there has been a comprehensive tax policy, the country generates sufficient revenues; there are some weaknesses in the implementation partly due to weaknesses within the mandated govemment institutions especially at Local Government levels.

TABLE OF CONTENTS

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT

TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS

LIST OF CASES

LIST OF LEGISLATION

ABSTRACT

CHAPTER ONE

INTRODUCTION

1. 0 Introduction

1.1 Background to the Study

1.2 Problem Statement.

1.3 Objectives of the study

1.3.1 General Objective

1.3.2 Specific Objectives

1.4 Research Questions

1.5 Scope of the study

1.6 Methodology

1.7 Literature Review

1.8 Chapterization

CHAPTER TWO

UNDERSTANDING THE CONCEPT OF TAXATION

2. 0 Introduction

2.1 Definitions of taxation

2.2 Canons of taxation

2.3 Taxation in Uganda

2.3.1 Types ofTaxes in Uganda

2.4 Challenges in tax administration in Uganda

CHAPTER THREE

EXAMINATION OF THE DIFFERENT TAX REFORMS IN UGANDA

3.0 Introduction

3.1 Major tax reforms in Uganda

3.2 Administrative reforms

3.3 Missed opportunities and future prospects for Uganda through tax reforms

3.4 Prospects for economic development tax reform in Uganda

3.5 Conclusion

CHAPTER FOUR

EXAMINATION OF THE NATIONAL LEGAL AND INSTITUTIONAL FRAMEWORK FOR TAX REFORMS IN UGANDA

4.0 Introduction

4.1 The Legal Framework for Tax Reforms in Uganda

4.2 Institutional Framework for Tax Reforms in Uganda

4.3 Institutional changes

4.4 Conclusion

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.0 Introduction

5.1 Summary of findings

5.2 Recommendations

5.3 Conclusions

REFERENCES