Effects of withholding value-added tax in Uganda

Karri Vuoristo

No wp-2025-63, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The paper examines the effects of a value-added tax (VAT) withholding regime implemented in Uganda using administrative data from the Uganda Revenue Authority. By using modern two-way fixed effects models, the research estimates the dynamic effects and finds that firms increase their reported outputs by approximately 17.8 per cent and that the estimated value added increases by around 35 per cent. The study finds no effect on reported inputs and offers suggestive evidence that the positive effect found in outputs and value added might not be persistent across time.

Keywords: Taxation; Tax compliance; withholding VAT; Uganda (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-acc, nep-iue and nep-pub
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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:wp-2025-63

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