Overview:
Mr. Ggoobi said the country’s tax-to-GDP ratio — a measure of how much revenue a country collects compared to the size of its economy — stands at 14 percent, which is below the Sub-Saharan Africa average of 16 percent.
Uganda is collecting far less in taxes than it should, a situation that continues to strain public spending and frustrate service delivery, according to the Permanent Secretary and Secretary to the Treasury (PSST), Mr. Ramathan Ggoobi.
Speaking on NBS Morning Breeze on Thursday, Mr. Ggoobi said the country’s tax-to-GDP ratio — a measure of how much revenue a country collects compared to the size of its economy — stands at 14 percent, which is below the Sub-Saharan Africa average of 16 percent.
“We are not collecting enough. We need to strengthen our revenue effort,” Mr. Ggoobi said. “Instead of collecting Shs 43 trillion as expected, we are currently collecting about Shs 32 trillion, although our target has now been revised to Shs 37 trillion.”
The Treasury boss blamed the shortfall on widespread tax evasion, under-declaration, and document falsification, warning that such practices continue to rob the country of much-needed development funds.
“Ugandans need to be sensitised on the importance of paying taxes,” he said. “People are smuggling goods, falsifying documents, and under-declaring their income — all of which undermines the government’s ability to deliver services.”
Mr. Ggoobi also expressed concern that even the limited funds released by government are not being put to proper use.
He cited the Shs 1 billion allocated annually to each local government for road maintenance, saying the money is not being used effectively.
“Whereas the budget for roads is not enough, the little that is sent to local governments — at least Shs 1 billion per district — is not producing the intended results,” he said. “We are going to conduct a forensic audit to establish how these funds are being spent.”
The PSST’s comments come amid growing frustration over the poor state of rural roads and other public infrastructure, with many districts citing inadequate funding. However, Ggoobi’s remarks suggest that inefficiency and possible misuse of funds could be worsening the problem.
Uganda’s low tax collection has long been cited as a key obstacle to achieving fiscal independence. With less than 15 percent of its GDP collected in taxes, the country relies heavily on borrowing and donor support to finance critical sectors such as health, education, and infrastructure.
Experts say improving tax compliance and accountability at local levels could significantly boost revenue and reduce Uganda’s dependence on external financing.
Mr. Ggoobi said government is working to expand the tax base and enhance domestic revenue mobilization, partly through digital systems that improve transparency and reduce human interference in tax assessment and collection.
However, he noted that without public cooperation and stronger enforcement, such reforms would have limited impact.
“We must change attitudes toward taxation,” he said. “Paying taxes should not be seen as a burden but as a civic duty. It’s the only way we can sustainably fund our own development.”