A Quest for Revenue and Tax Incidence in Uganda

IMF Working Papers, March 1, 2001

Source details

This paper examines tax policy and tax reforms in Uganda.
It uses household survey evidence to identify which taxes are progressive and to investigate whether tax reforms have made the poor better or worse off.
The paper also examines business taxation and the actual tax burden on firms’ capital investment.
Key analytical conclusion: even when the country’s level of public revenue is low at the macroeconomic level, rapidly increasing taxation may pose a constraint to private investment at the microeconomic level.

Household survey analysis reveals that some of the tax reforms implemented in the 1990s were generally pro-poor.
The analysis identifies which taxes are progressive based on household survey evidence (specific tax-by-tax incidence details are contained in the full paper).

The paper examines business taxation and the actual tax burden on firms’ capital investment.
Analysis demonstrates that rapidly increasing taxation can pose a constraint to private investment at the microeconomic level, despite low macroeconomic public revenue.

Subject: Corporate income tax, Marginal effective tax rate, Tax holidays, Tax incidence, Tax policy, Taxes, Value-added tax
Keywords: B. firm Incidence analysis, Corporate income tax, depreciation rate, East Africa, firm, firm survey, Marginal effective tax rate, survey evidence, Tax holidays, Tax Incidence, Tax Reforms, tax-holiday firm, Ugandan firm, Value-added tax, WP

Source: "A Quest for Revenue and Tax Incidence in Uganda", IMF Working Papers, John J Matovu, Duanjie Chen, Ritva Reinikka-Soininen, March 1, 2001.

A Quest for Revenue and Tax Incidence in Uganda - WP/01/24
- A Quest for Revenue and Tax Incidence in Uganda - WP/01/24 (Markdown version)
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