Taxpayer response to greater progressivity: Evidence from personal income tax reform in Uganda

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

No wp-2023-66, 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, contributing to the scarce literature on the effects of personal income tax reform on employees' income in a low-income country in Africa. The reform increased the tax-free lower threshold, increased tax rates for higher incomes, and introduced an additional highest tax band for top 1% of income earners. Using the universe of pay-as-you-earn (PAYE) administrative data from the Uganda Tax Authority, we analyse the impact of the reform on reported labour incomes.

Keywords: Personal income tax; Uganda; Administrative data; Tax reform (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-inv
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Working Paper: Taxpayer response to greater progressivity: Evidence from personal income tax reform in Uganda (2023)
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