Musasizi Urges MPs to Back Tax Base Expansion
Ugandan Finance Minister Henry Musasizi is calling for a broader tax base to increase domestic revenue and reduce the country's reliance on borrowing. He emphasized that the government aims to reach a 20% tax-to-GDP ratio by 2029/30 by improving compliance rather than just increasing tax rates.
Why it matters
This reflects a critical fiscal strategy for developing nations aiming to achieve long-term economic self-reliance and fund large-scale infrastructure projects.
KAMPALA — Finance Minister Henry Musasizi has urged Members of Parliament to support measures to broaden Uganda’s tax base as Government seeks to increase domestic revenue, reduce reliance on borrowing and strengthen fiscal self-reliance.
Musasizi said Uganda cannot achieve its target of raising the tax-to-GDP ratio from the current 14.7% to 20% by the 2029/30 financial year by continually increasing the burden on taxpayers already in the system.
“The answer cannot simply be higher tax rates. We cannot achieve 20% by continuously taxing the same people more,” Musasizi said.
He was speaking during an engagement between the Uganda Revenue Authority (URA) and parliamentary committees at Serena Hotel in Kampala.
Musasizi said the focus should instead be on bringing more economic activity into the formal tax system, improving compliance and administration, and reducing revenue leakages.
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