Shs160b lost annually in tax breaks, says URA

By Deogratius Wamala Uganda is faced with a difficult task of meeting ambitious revenue targets while juggling the complex al- lure of tax incentives it uses to attract investments to drive its economic growth and employment of its young population. In order to attract significant foreign direct investment,the country introduced 10-year tax exemptions for businesses located in industrial parks. However, economists are concerned that these incentives may have the opposite effect of what the country intended, as they “uplift firms more than the country itself.” Uganda’s economic narrative has been marked by persistent budgetary deficits, affecting essential public services, public servant salaries, and the stability of the national currency. The urgency to break free from this cycle has forced the […]