Government to widen tax base by involving informal sector
According to the Government Chief Whip, new taxes will not be introduced in the next financial year, despite the negative impact COVID-19 has had on domestic revenue mobilization . With a target of increasing the Tax to GDP ratio from 13% to above 20%, government is planning to widen the tax base by bringing the informal sector into the tax bracket.
Speaking at a Stanbic Bank Economic Restart Breakfast Meeting this week, Hon. Thomas Tayebwa the Government Chief Whip says that if the GDP is widened to around 21%, it would bring UGX 9 trillion into the State coffers
Domestic resources fund just about 50% of the national budget in a country that is highly dependent on international trade and tourism, the progress and sustainability of the sustainable development goals will be dependent on our own revenue.
