The Impact Of The Laws On Tax Incentives On The Socio-economic Development In Uganda

ABSTRACT The dissertation was undertaken to collect data on The Impact of the Laws on Tax Incentives on the Socio-Economic Development in Uganda. It employed both qualitative and quantitative methods in collection of data; theses were questionnaire/ interview guide and observation. Using sampling/ the research selected 133 respondents out of the 200 targeted population and questionnaire and interview method were used to collect data. The study targeted various classes of stakeholders ranging from investor~ traders/ local authorif:½ governmental & Non Governmental Officials and Community Based Organisations. The major findings were to find out how the laws on tax incentives in Uganda have affected the rate of social-economic development This study was sought to ascertain the effectiveness of the laws on tax incentives. It as based on 4 objectives that are; To find out the origin and nature of laws on tax incentives being administered in Uganda; To evaluate the effectiveness of the laws on tax incentives; To evaluate the impact of laws on tax incentives on socio-economic development in Uganda and To find out recommendations for the improvement of the whole investment climate whether legal or otherwise for social economic development The major tool of data collection was questionnaire and the study was both qualitative and quantitative. The current policy of using tax incentives to attract investments to Uganda has many notable flaws. It costs government fortunes in terms of foregone revenue/ yet its real contribution to the stimulation of investments is rather minimal. The foregoing discussion showed why this is the case. In summing up the role incentives play in socio-economic growth we ought to recall three vital points. First tax incentives do not play a crucial role in the investors' investment location decisions. Tax incentives therefore/ do not compensate for the inherent decisions. However, since all countries ordinarily strive to build effective investment regimes/ a country that has built hers would do well supplementing it with a few strategic/ well formulated and clearly focused tax incentives. It is in this light that I make the following recommendation for Uganda's tax incentives and investment policies.