Minister Musasizi to MPs: Broaden Tax Base, Don’t Just Tax Same People More to Reach 20% Revenue Target

By Wilfred Arinda Nshekantebirwe

KAMPALA- The Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi has called upon Members of Parliament to support Government efforts to broaden the tax base as part of the strategy to raise domestic revenue and reduce dependence on borrowing.

Writing on his X handle @henrymusasizi1 after the Uganda Revenue Authority (URA) engagement with Parliamentary committees earlier today, Musasizi said Government is targeting to increase the revenue-to-GDP ratio from the current 14.7% to 20% by FY2029/30.

“Earlier today at the Uganda Revenue Authority (URA) engagement with Parliamentary committees, I called upon Members of Parliament to support efforts to broaden the tax base as Government seeks to raise domestic revenue, reduce dependence on borrowing and strengthen fiscal self-reliance,” Musasizi posted.

He stressed that the 20% target cannot be achieved by over-taxing the existing compliant taxpayers.

“The answer cannot simply be higher tax rates. We cannot achieve 20% by continuously taxing the same people more,” he noted.

According to Musasizi, additional revenue should come from economic growth, formalisation of the economy, improved compliance, better administration of existing taxes, taxation of emerging economic activity and reduction of revenue leakages.

He linked domestic revenue mobilisation directly to Uganda’s ambition of building a US$500 billion economy under the Tenfold Growth Strategy, saying the country cannot build that economy indefinitely on borrowed resources.

Musasizi further urged MPs to protect the tax base, support formalisation, digitalisation and information sharing, strengthen accountability and promote tax compliance.

The engagement comes as Government intensifies consultations on how to finance the Tenfold Growth Strategy through sustainable, domestically generated resources.

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