Browsing: George Town University

Uganda's 7% projected growth too ambitious, World Bank

The World Bank told Uganda’s government to stop giving unnecessary tax exemption because they are eroding a huge tax base that would otherwise have huge returns.

A study conducted by George Town University, presented during Economic Growth Forum in Uganda last year indicated tax incentives cost Ugandan taxpayers between about $8.9 billion and about $12.9 billion or 2 per cent of GDP annually.

The World Bank said this, has denied Uganda an opportunity to increase the country’s tax ratio to the GDP, which remains low compared to other countries in sub-Saharan Africa and East Africa.

Speaking in Kampala on Wednesday, the World Bank senior country economist, Mr Richard Walker said Uganda’s fiscal policy is constrained by low revenues and slow execution of capital spending.

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“At 12.6 per cent of GDP, it is far below government’s medium-term revenue target and compared to …