Impact of Taxation on Economic Growth (Gdp) in Uganda (1999/2000Q1 ’ 2014/15Q2).
Author: SSENYONGA JAMES
The major aim of this study was to assess the impact of taxation on economic growth in Uganda using a single equation error correction model. The data were quarterly obtained from Bank of Uganda, Uganda Revenue Authority and Uganda Bureau of Statistics.
The study design employed in this study used a cross sectional research format and involved a quantitative research design.
Existing studies indicated that taxation significantly accounts for economic growth of any country. However, this study majorly concentrated on more developed countries rather than low developed countries like Uganda.
The study found out that was sufficient statistical evidence to suggest that import duty does affect economic growth. The study also found out that there was no sufficient statistical evidence to reject the hypothesis that implies withholding tax does not affect GDP. Therefore, the researcher concluded by failing to reject the null hypothesis for the case of Ugandaís economy.
Basing on the above findings, the study recommends that the government of Uganda through its different stakeholders formulates favourable tax rates as it aims at generating revenue without affecting the level of growth of international trade in the country.