Uganda Finance Minister urges tax base expansion to boost revenue

Uganda's Finance Minister Henry Musasizi has urged Members of Parliament to support broadening the national tax base to increase domestic revenue and reduce reliance on borrowing. During an engagement with parliamentary committees, Musasizi stated that the government aims to raise the revenue-to-GDP ratio from 14.7% to 20% by the 2029/30 fiscal year.

Musasizi emphasized that achieving these targets cannot rely solely on increasing tax rates for existing taxpayers. Instead, he proposed focusing on economic growth, formalizing economic activities, improving compliance, and taxing emerging sectors. He linked these efforts to Uganda’s ‘Tenfold Growth Strategy,’ which seeks to build a $500 billion economy without relying on borrowed resources.

Uganda Revenue Authority (URA) Commissioner General John Rujoki Musinguzi noted that the changing tax landscape presents challenges such as structural informality, the rapid growth of the digital economy, and illicit trade. The URA plans to focus on mapping priority sectors, enhancing taxpayer education, and implementing risk-based enforcement and improved information sharing across government institutions.