Is the Domestic Revenue Mobilization (DRM) Strategy the solution to Uganda’s tax mobilisation challenges?
That will depend on how it will be implemented. When we started talking about tax justice, people were not aware about tax accountability. There was laxity in demanding for accountability. We anticipate that with strategy in place, the country will have a clear direction on how to mobilise resources in a fair and inclusive way.
That will depend on how it will be implemented. When we started talking about tax justice, people were not aware about tax accountability. There was laxity in demanding for accountability. We anticipate that with strategy in place, the country will have a clear direction on how to mobilise resources in a fair and inclusive way.
The
strategy provides some certainty and predictability. If you look at the
principles underpinning the strategy, it is encompassed with simplicity,
transparency, fairness and involvement of tax payers in the tax
formulation processes. There is some effort to reduce revenue leakages
and exemptions.
This is in addition to promoting the
social contract as well as stamping out corruption. The strategy seems
to provide commitments to address all these challenges. However, as the
saying goes: “The proof of the pudding is in the eating.”
Is the DRM strategy complete in its current form?
Any good strategy must provide concise objectives, thorough analysis of the problem and actionable interventions. The DRM strategy seems to include all these. Importantly, strategies should also depict some assumptions and risks.
Any good strategy must provide concise objectives, thorough analysis of the problem and actionable interventions. The DRM strategy seems to include all these. Importantly, strategies should also depict some assumptions and risks.
But this DRM does not have them. The two
elements are important in terms of the future. It appears as if this
strategy has no budget attached to it and that is somewhat strange.
Do you think the DRM strategy speaks to the aspiration of the tax payers?
Yes it does; people want to see that everyone pays their fair share of taxes and if the strategy is implemented, it is possible that people may endear to it. There is every chance for that to happen if properly implemented.
Yes it does; people want to see that everyone pays their fair share of taxes and if the strategy is implemented, it is possible that people may endear to it. There is every chance for that to happen if properly implemented.
So there is need to engage the population to realise value for
money. This will strengthen the social contract between the government
and citizens.
Is DRM strategy a quick fix or document with solutions to the tax structure?
I don’t think so. It makes attempt to address both policy and structural issues. We believe the DRM strategy analyses the challenges Uganda is facing in mobilising taxes. It is a sobering reflection of the reality on the situation.
I don’t think so. It makes attempt to address both policy and structural issues. We believe the DRM strategy analyses the challenges Uganda is facing in mobilising taxes. It is a sobering reflection of the reality on the situation.
The document does not shy away from
raising challenges such as corruption and misuse of resources. It also
outlines clearly the necessary actions that are required to reach the
desired goal of developing a robust but fair taxation system. However,
it is just a document which will have to be translated into action.
Is the DRM strategy a product of consultative process?
The process of developing the DRMS involved representatives from the private sector and the Civil Society Organisations (CSOs) under the Tax Justice Alliance Uganda. We consulted some stakeholders to inform the process.
The process of developing the DRMS involved representatives from the private sector and the Civil Society Organisations (CSOs) under the Tax Justice Alliance Uganda. We consulted some stakeholders to inform the process.
Some of the CSOs recommendations on double
taxation agreements, tax incentives and exemptions, local revenue
mobilisation, and citizen’s engagement in tax policy were considered.
Others including impact of mobile money and social media tax were not
taken on board yet the impact is already evident. However, citizens’
engagement in tax issues is still limited.
Government
will have to involve more citizens in the tax policy formulation
process. Most people are not aware about the processes. Fortunately, one
of the key interventions in the Strategy is tax payer education and
communication.
Are you optimistic about this document? If yes, why? If no, kindly explain.
Yes I am optimistic. Strategies guide you where you want to go and how to get there. Government has been trying to mobilise resources; however, it has been facing a number of challenges as envisaged in the low tax to GDP [Gross Domestic Product] ratio which has recently been re-based to 12.9 per cent.
Yes I am optimistic. Strategies guide you where you want to go and how to get there. Government has been trying to mobilise resources; however, it has been facing a number of challenges as envisaged in the low tax to GDP [Gross Domestic Product] ratio which has recently been re-based to 12.9 per cent.
This will need concerted efforts of all
stakeholders. We need money to implement all the strategies and ensure
that the aspirations to mobilise our resources do not stop on paper
only.
Do you have faith that this strategy will be implemented to its logical conclusion?
I hope so; for that I will give it benefit of doubt. I am keeping my fingers crossed to see how it all turns out. As a country we are not short of good laws and strategies. Our problem seems to be deeply entrenched in implementation. It is up to us to demand that government implements what it has committed to.
I hope so; for that I will give it benefit of doubt. I am keeping my fingers crossed to see how it all turns out. As a country we are not short of good laws and strategies. Our problem seems to be deeply entrenched in implementation. It is up to us to demand that government implements what it has committed to.
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