The Effectiveness of Tax Incentives on Investment Promotions A Case Study Of Kaliro Sugar And Allied Industries Limited Kaliro District

TABLE OF CONTENTS

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

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

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

ACKNOWLEDGMENT ................................................................................... iv

ABBREVIATIONS .................................................................................... vi

TABLE OF CONTENTS .................................................................................... vii

LIST OF TABLES ................................................................................... x

LIST OF FIGURES ..................................................................................... xi

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

GENERAL INTRODUCTION ................................................................................. 1

1.0 Introduction ..................................................................................... 1

1: 1 Background of the study .................................................................................... 1

1.2.0 Statement of the problem ..................................................................................... 2

1.2.l FDI Flow of Uganda from (2013-2017) ................................................................................. 3

1.3 Objectives of the Study ................................................................................. 3

1.3.1 General objectives ...................................................................................... 3

1.3.2 Specific objectives .................................................................................... 3

1.4 Research questions ..................................................................................... 3

1.5. Scope of the study ...................................................................................... 4

1.5. I Content scope ..................................................................................... 4

1.5.2 Geographical scope ........................................................................................ 4

1.5.3 Time scope ...................................................................................... 4

1.6 Conceptual Framework ..................................................................................... 4

1.6.l An Illustration of Conceptual Frame Work ............................................................................ 5

Source: Primary data ...................................................................................... 5

1.6 Significance of Study ...................................................................................... 6

CHAPTER TWO .................................................................................... 7

LITERATURE REVIEW ..................................................................................... 7

1.1 Introduction ....................................................................................... 7

2.2 Tax Incentives ..................................................................................... 7

2.3 Types of Tax Incentives .................................................................................... 7

2.3.1 Tax holidays ..................................................................................... 7

2.3 Investment Allowances .................................................................................... 8

2.4 Tax Credit Accounts .................................................................................... 8

2.5 Accelerated Depreciation ..................................................................................... 8

2.6 Sales tax exemptions .................................................................................... 8

2.7 Property Tax Reduction ..................................................................................... 9

2.8 Reduced Import Taxes and Custom Duties ............................................................................... 9

2.9 The significance of tax incentives to the development ofKaliro sugar and Allied industry? ... 9

2.10 Factors that affects Investment Promotions in Kaliro sugar and allied industry limited ...... 10

2.11 The Relationship between Tax Incentives and Investment Promotions in Kaliro sugar and

allied industry limited .................................................................................. 11

CHAPTER THREE .................................................................................... 13

RESEARCH METHODOLOGY ...................................................................................... 13

3.0 Introduction ........................................................................................ 13

3. I Research Design .................................................................................... 13

3 .2 Study Population ...................................................................................... 13

3.3 Sample Selection and Procedures .................................................................................. 14

3.4 Sample Size ..................................................................................... 14

3.5 Methods of Data Collection .................................................................................. 14

3 .5. I Questionnaires ...................................................................................... 15

3.5.2 Interviewing ................................................................................... 15

3 .5 .3 Observation Method ..................................................................................... 15

3.6.4 Data Collection .................................................................................... 15

3.7 Data processing and analysis ................................................................................... 16

3.7.1 Data Analysis .................................................................................... 16

3. 7 .3 Anticipated Limitations ...................................................................................... 16

3.8 Solutions to the Limitations of the Study ................................................................................ 16

CHAPTER FOUR ...................................................................................... 18

PRESENTATION, ANALYSIS AND INTERPRETATION OF THE STUDY FINDINGS ...... 18

4.1 Introduction .................................................................................. 18

4.2 Back ground information of the respondents .......................................................................... 18

4.3 Age group of the respondents .................................................................................... 19

4.4 Marital status of the respondents ................................................................................... 20

4.5 Respondent's position held in the industry ............................................................................. 23

4.6 Respondent's experience in the industry ................................................................................. 24

4.7 The significance of tax incentives on investment promotions of Kaliro sugar and allied

industries limited in Kaliro district ..................................................................................... 25

4.8 To answer this objective, respondents were asked to give the factors that affect investment

promotions in the industry ...................................................................................... 26

CHAPTER FIVE ...................................................................................... 29

SUMMARY CONCLUSION AND RECOMMENDATION .................................................... 29

5.0 Introduction ........................................................................................ 29

5.1 Summary .................................................................................... 29

5.2 Conclusion ...................................................................................... 30

REFERENCES ....................................................................................... 31

APPENDICES ..................................................................................... 34

APPENDIX I: QUESTIONNAIRE .......................................................................................... 34