Browsing by Author "Katwesige, Derick Innocent"

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    Determinants of tax-to-GDP growth in Uganda: 2008 – 2023
    (Kyambogo University (Unpublised work), 2024-03) Katwesige, Derick Innocent
    Uganda is among the countries that implemented tax policy and administration reforms with the aim of increasing performance of revenue. Much as these tax reforms yielded some success and improved the tax revenue performance, early tax revenue performances have not been maintained. It is acknowledged that tax revenue is one of the resources needed to finance expenditure in several economies, Uganda inclusive, fail to mobilize sufficient revenue, necessitating borrowing. The study empirically examined the factors that determine the growth of Tax-To-GDP in Uganda, utilizing quarterly data spanning from 2008/2009 to 2022/2023. Data for the study was obtained from MoFPED, URA, UBOS and BoU. The study objectives were to; determine the impact of agriculture, industry and services on growth of Tax-To-GDP in Uganda; examine the impact of trade openness on growth of Tax-To-GDP in Uganda and examine the impact of exchange rate and inflation on growth of Tax-To-GDP in Uganda. The study was based on the Laffer Curve Theory, the Cobb Douglas Theory and the Marshall Lerner Theory. An ARDL-ECM model augmented by the bounds test were estimated. The findings demonstrated that Agriculture, Industry and Services negatively and significantly affect the growth of Tax-To-GDP in the long-term while Trade Openness and Exchange Rate positively and significantly affected Tax-To-GDP growth. The study recommends linking agriculture to value addition through agro-processing and trade in manufactured products which will result in high income. From the findings, services sector indicated that it had a negative and significant coefficient of -1.998022. Therefore, the study recommends the need to direct policy towards addressing the difficulty of taxing the sector with focus on strengthening tax administration capacity in Uganda, the need to enhance trade openness through further economic integration, more trade facilitation, removing trade barriers to ensure that there is increase in the volume of goods crossing borders.