- Two-thirds (66%) of Ugandans say tax authorities always have the right to make people pay taxes. o But almost half (48%) think the government could find enough money from other sources to fund the country’s development without having to tax people.
- A majority (56%) of respondents say the government usually uses the tax revenues it collects to improve citizens’ well-being.
- Three-fourths (74%) of citizens think that “Parliament should ensure that the president explains to it on a regular basis how his government spends taxpayers’ money.”
- Nearly six in 10 Ugandans (59%) say “most” or “all” tax officials are involved in corruption. o In 2021, only 35% of citizens said they trust the URA “somewhat” or “a lot.” ▪ A slim majority (53%) say citizens “often” or “always” avoid paying taxes that they owe the government.
- Nearly eight in 10 respondents (77%) say it is fair to tax rich people at a higher rate than ordinary people to help pay for government programmes that benefit the poor. o Only 39% think the government should make sure that small traders and others working in the informal sector pay taxes on their businesses.
- Fewer than half (43%) of Ugandans say it is better to pay higher taxes and fees in exchange for more government services, but 50% would prefer lower taxes even if it means receiving fewer services. o Even so, large majorities support raising taxes to increase spending on public education (75%), public health care (74%), helping young people (72%), and helping poor people (70%).
Taxation is the dominant source of government revenue in almost all countries (Ortiz-Ospina & Roser, 2024). In Uganda, only 45% of the national budget is financed through domestic revenue (Lees, 2025). Taxes are paid in the form of, among others, income tax, value-added tax, property tax, local service tax, licensing fees, and excise and customs duties (Kawa, n.d.). External sources of government revenue include loans and grants (Nakayenga, n.d.).
In recent years, the government has rolled out several measures designed to simplify taxation and increase revenue collection, including tax identification numbers, an additional top tax band, and electronic receipting and invoicing (Jouste, 2024; Jouste, Barugahara, Okello, Pirttilä, & Rattenhuber, 2024). Tax rates have also been adjusted (Kawooya, Salawu & Ndagire, 2024). These efforts have contributed to higher revenue collection: In Fiscal Year 2024/2025, tax revenue constituted 14.27% of gross domestic product (GDP), up from 13.71% the year before. The government is targeting a tax-to-GDP ratio of 30% by 2039/2040 (Ministry of Finance, Planning, and Economic Development, 2025).
Tax collection in Uganda faces many challenges, including a narrow tax base – 1,000 taxpayers contribute 80% of all taxes – as well as inefficient technologies, insufficient tax education, tax evasion, inconsistencies in tax policies, poor enforcement mechanisms, corporate tax incentives and profit-shifting, and a large untapped informal sector (Samilu, 2024; Kawooya, Salawu, & Ndagire, 2024; Jouste, 2024). In addition, the Uganda Revenue Authority (URA) has been beset by multiple corruption scandals. As a result, the URA has missed revenue-collection targets several times since its establishment in 1991 (Hickey, 2023).
Results of an Afrobarometer survey in Uganda in January 2025 show that a majority of citizens perceive “most” or “all” tax officials as being corrupt, while only about one-third express trust in the URA. Despite these misgivings, two-thirds accept the government’s right to collect taxes.
More than half of respondents think taxes are used for citizen well-being, but three-fourths say Parliament should monitor how the government spends taxpayers’ money.
Only four in 10 citizens think the informal sector should be taxed. Twice as many consider it fair to tax the rich at a higher rate than ordinary people to benefit the poor.
Large majorities support higher taxes for public health care, public education, youth programmes, and initiatives to support the poor. Yet fewer than half of Ugandans favour paying higher taxes in exchange for more government services.
More than half of respondents suspect that people “often” or “always” avoid paying taxes.
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