Francois Gerard, International Growth Centre

Fiscal Capacity and Tax Revenues in Uganda

The overarching objective of this project is to study the fiscal capacity constraints of tax administrations in developing countries, and ways to improve fiscal capacity and increase tax revenue in these country. The specific context of this project is the Value Added Tax in Uganda. In particular, we are using detailed microdata to understand some of the main fiscal capacity constraints and their consequences (e.g., allowing substantial tax evasion), some of the second-best policies that may mitigate those consequences (e.g., constraints to the payment of VAT credits), and alternative policies that may better address these issues.