Arbeitspapier
The effects of personal income tax reform on employees' taxable income in Uganda
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. Overall, the additional revenue generated from the introduction of the additional top tax band by far offset the revenues lost from the decreased revenues from employees with medium to lower taxable incomes, despite the large elasticity of taxable income at the top. We contribute to the very scarce literature on the effects of personal income tax reform on employees' income in a low-income country in Africa.
- ISBN
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978-92-9256-945-7
- Language
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Englisch
- Bibliographic citation
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Series: WIDER Working Paper ; No. 2021/11
- Classification
-
Wirtschaft
Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Fiscal and Monetary Policy in Development
- Subject
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personal income tax
Uganda
administrative data
tax reform
- Event
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Geistige Schöpfung
- (who)
-
Jouste, Maria
Barugahara, Tina Kaidu
Ayo, Joseph Okello
Pirttilä, Jukka
Rattenhuber, Pia
- Event
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Veröffentlichung
- (who)
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The United Nations University World Institute for Development Economics Research (UNU-WIDER)
- (where)
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Helsinki
- (when)
-
2021
- DOI
-
doi:10.35188/UNU-WIDER/2021/945-7
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Jouste, Maria
- Barugahara, Tina Kaidu
- Ayo, Joseph Okello
- Pirttilä, Jukka
- Rattenhuber, Pia
- The United Nations University World Institute for Development Economics Research (UNU-WIDER)
Time of origin
- 2021
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