Tax Reforms and Domestic Revenue Mobilization in Uganda. A Case Study of Uganda Revenue Authority Entebbe Municipality

TABLE OF CONTENTS

DECLARATION .......................................................................................................................... i

APPROVAL ................................................................................................................................ ii

DEDICATION ............................................................................................................................ iii

ACKNOWLEDGEMENTS ........................................................................................................ iv

TABLE OF CONTENTS ............................................................................................................. v

LIST OF TABLES .................................................................................................................... viii

CHAPTER ONE ........................................................................................................................ 1

1.0 Background of the study ........................................................................................................ 1

1.1 Statement of the problem ....................................................................................................... 4

1.2 Purpose of the Study .............................................................................................................. 4

1.3 General Objectives ofthe study ............................................................................................. 4

1.3.1 Specific objectives .............................................................................................................. 4

1.4 Research questions ................................................................................................................. 5

1.5 Scope of the study .................................................................................................................. 5

1.6 Significance of the study ........................................................................................................ 5

1. 7 Conceptual Framework .......................................................................................................... 6

CHAPTER TWO ................................ ., . ., ...................... o···········o······································"·········· 7

LITERATURE REVIEW ·····································o··································································· 7

CHAPTER THREE ....................................................................l6

RESEARCH METHODOLOGY ........................................................................................... 16

3 .1. Research design .................................................................................................................. 16

3.2 Study population .................................................................................................................. 16

3.3 Sample size .......................................................................................................................... 16

3.4 Sampling method ................................................................................................................. 17

3.5 Methods of data collection and instruments ........................................................................ 17

3.5.1 Questionnaire .................................................................................................................... 17

3.6 Validity and reliability of research instruments ................................................................... 18

3.6.1 Research validity ............................................................................................................... 18

3.6.2 Reliability .......................................................................................................................... l8

3.7 DataAnalysis ..................................................................................................................... l8

3.8 Ethical consideration ............................................................................................................ 19

3.9 Study limitations .................................................................................................................. 19

CHAPTER FOUR .................................................................................................................... 21

PRESENTATION, ANALYSIS AND DISCUSSION OF RESEARCH FINDINGS ........ 21

4.1 Gender of respondents ......................................................................................................... 21

4.2 Age bracket ofthe respondents ............................................................................................ 21

4.1.3 Academic qualification of respondents ............................................................................. 22

4.1.4 Period spent working with URA ....................................................................................... 22

4.1.5. Department respondents worked in ................................................................................. 23

4.2 Finding on tax reforms ......................................................................................................... 23

4.2.1 Staffs have sufficient knowledge of all major tax reforms such as vat, income tax act, abolition of export taxes, and reduction of import duties, administrative structure and tax education .............................................................. 23

4.2.2 Introduction ofV AT is a major indirect tax refom1 undertaken ....................................... 24

4.2.3 Abolition of export taxes is an indirect tax reform ........................................................... 25

4.2.4 Reduction of import duties is an indirect tax reform ........................................................ 25

4.2.5 Income tax act is considered as the major direct tax reform ............................................ 26

4.2.6 Administrative procedures are properly followed in the tax management.. ..................... 26

4.2. 7 All tax payers are provided sufficient tax education ........................................................ 27

4.3 Finding on domestic revenue mobilization .......................................................................... 27

4.3.2 URA Entebbe municipality collects more tax revenue from indirect form of tax than direct form of tax ...................................... 28

4.3.3 Collecting tax revenue from organization is easier than from individual tax payer. ........ 28

4.3.4 Domestic revenue mobilization procedures are effective ................................................. 29

4.3.5 Budgeted tax revenue target is always achieved .............................................................. 29

4.3.6 Tax rate determine the level of domestic revenue mobilization in your municipality ..... 30

4.3.7 Income level ofthe population determine tax revenue from income tax ......................... 30

4.3.8 Tax administrative procedures determine the level of domestic revenue mobilization in your municipality ................................................... 31

4.4 Finding on the relationship between tax reforms and domestic revenue mobilization ....... 31

4.4.1 Domestic revenue mobilization target is achieved due to appropriate tax reforms put in place ....................................... 31

4.4.2 The tax reform makers always determine the level of domestic tax revenue mobilization and take corrective action................................ 32

4.4.3 More domestic revenue can be mobilized when effective tax reforms are established .... 33

4.4.4 Tax reforms and domestic revenue mobilization are closely linked ................................ 33

4.5 Finding on relationship between tax reforms and domestic revenue mobilization ............. 34

CHAPTER FIVE ...................................................................................................................... 35

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS .............. 35

5.1 Summary of findings ........................................................................................................... 35

5.2 Conclusion ........................................................................................................................... 35

5.3 Recomn1endations ................................................................................................................ 36

REFERENCES .......................................................................................................................... 38

APPENDIX I ............................................................................................................................. 41

QUESTIONNAIRE ................................................................................................................... 41