The effects of personal income tax reform on employees' taxable income in Uganda

Maria Jouste, Tina Kaidu Barugahara, Joseph Okello Ayo, Jukka Pirttilä and Pia Rattenhuber

No wp-2021-11, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: We evaluate a major personal income tax reform in Uganda that came into effect in 2012-13. The reform increased the tax-free lower threshold, increased tax rates for higher incomes, and introduced an additional highest tax band. Using the universe of pay-as-you-earn administrative data submitted by employers in the formal sector, we analyse the impact on taxable income of the introduction of the additional top tax band. Our results indicate that the elasticity of taxable income in Uganda is larger than in previous results from developed countries.

Keywords: Personal income tax; Uganda; Administrative data; Tax reform (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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