The purpose of the research underlying this report is to contribute towards the process of policy change in Uganda with respect to local government taxation. The study uncovers serious flaws in the design and practice of existing local government tax regimes in rural areas. These flaws include serious revenue leakages in the private tax collection system, negative impacts on income distribution, and harmful impacts on local economic growth. Moreover, the lack of effective linkages between taxes collected and services delivered by local authorities legitimises tax evasion and contributes to undermine state-citizen relations.

Odd-Helge Fjeldstad

Research Professor, Coordinator: Tax and Public Finance