Ways of improving Tax revenue and Tax collection in Uganda (LDC’S)
- Massive tax education. There is need to sensitize the people about the different types of taxes and the importance of paying taxes through seminars, workshops radio programs etc. This helps the masses to develop the culture of paying
- Diversification of taxes. A variety of taxes should be imposed on different economic activities as a way of increasing government tax revenue.
- Need to fight corruption in tax assessment and administration. The corrupt officials should be prosecuted in the courts of law. This helps to minimize on the loss of government tax revenue.
- Putting in place the anti-smuggling unit. This can help to reduce on the smuggling of commodities in and outside the country hence increasing tax revenue from imports and exports.
- Training of tax officials. The tax officials should be provided with the necessary skills required to improve on the efficiency of tax assessment administration. This helps to increase on the tax revenue collections.
- Putting in place the facilities required to facilitate tax assessment and collection. for example computers and other logistics. This can help to improve on tax administration and collection.
- Review the existing tax laws. Many laws existing in the tax system are out dated. Therefore there is need to plug the loop holes within the tax system by reviewing the existing tax laws as a way of minimizing the loss of tax revenue through tax avoidance.
- Improving on the existing and constructing new social and economic infrastructures, for example roads especially in rural areas. This helps to lower the transport costs hence reducing the costs of tax revenue collection.
- Ensuring political stability and security in the country. This is done by promoting democratic governance in the country. In addition, peace talks with the rebels can be emphasized as a way creating peace in the country so as to promote investment hence widening the tax base.
- Proper and efficient allocation of tax revenue. There is need for the government to properly and effectively use the tax revenue in order to provide the social services to encourages people to pay taxes.
- There is need to expand the industrial sector. This is because industries have the potential to increase tax revenue as compared to other sectors like agriculture.
CATEGORIES Economics
TAGS Dr. Bbosa Science
