Uganda's Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, has urged Members of Parliament to support government efforts to broaden the tax base. This move aims to raise domestic revenue and reduce dependence on borrowing. Musasizi emphasized that the goal is to increase the revenue-to-GDP ratio from 14.7% to 20% by FY2029/30. He made these remarks after the Uganda Revenue Authority (URA) engagement with Parliamentary committees.
Musasizi stressed that achieving the 20% target cannot be done by over-taxing existing compliant taxpayers. He noted that additional revenue should come from economic growth, formalisation of the economy, improved compliance, and better administration of existing taxes. The minister also highlighted the importance of taxing emerging economic activity and reducing revenue leakages. This approach is crucial for Uganda's economic growth and development.
The minister linked domestic revenue mobilisation directly to Uganda's ambition of building a US$500 billion economy under the Tenfold Growth Strategy. He emphasised that the country cannot build that economy indefinitely on borrowed resources. Musasizi's call to action comes as the government intensifies consultations on financing the Tenfold Growth Strategy through sustainable, domestically generated resources.
Musasizi further urged MPs to protect the tax base, support formalisation, digitalisation, and information sharing. He also emphasised the need to strengthen accountability and promote tax compliance. These measures are essential for achieving the government's revenue targets and promoting economic growth.
The engagement between the URA and Parliamentary committees is part of the government's efforts to increase domestic revenue. The URA is working to improve tax collection and reduce revenue leakages. The government aims to create a more efficient and effective tax system that promotes economic growth and development.
The Tenfold Growth Strategy is a key initiative aimed at driving Uganda's economic growth. The strategy focuses on increasing domestic revenue, promoting economic development, and reducing poverty. The government's efforts to broaden the tax base are critical to achieving these goals.
The minister's call to action has significant implications for Uganda's economic development. By broadening the tax base and promoting tax compliance, the government can increase domestic revenue and reduce its dependence on borrowing. This approach will help to promote sustainable economic growth and development in Uganda.
Key points
- The government aims to increase the revenue-to-GDP ratio from 14.7% to 20% by FY2029/30.
- The 20% target cannot be achieved by over-taxing existing compliant taxpayers.
- Domestic revenue mobilisation is directly linked to Uganda's ambition of building a US$500 billion economy under the Tenfold Growth Strategy.
