Ugandan Ministry of Finance, Planning and Economic Development publishes its Fourth tax expenditure report

In April 2025, the Ugandan Ministry of Finance, Planning and Economic Development (MoFPED) published its Tax Expenditure Report for the fiscal year 2023/24, developed in collaboration with the Uganda Revenue Authority (URA). This marks the fourth edition of Uganda’s tax expenditure reporting, building on the methodology and insights of previous years.

The report estimates that total revenue foregone due to tax expenditures amounted to UGX 3,609 billion, representing 1.78% of GDP or approximately 13% of total tax revenue collected in FY 2023/24.

Key findings include:

• Customs duty tax expenditures were the largest component, estimated at UGX 1,137 billion (0.56% of GDP), accounting for 32% of total tax expenditures.
• VAT tax expenditures declined significantly from UGX 1,113.21 billion (0.61% of GDP) in FY 2022/23 to UGX 677.27 billion (0.34% of GDP) in FY 2023/24.
• Personal Income Tax (PIT) expenditures were estimated at UGX 715.65 billion (0.35% of GDP), Corporate Income Tax (CIT) expenditures at UGX 326 billion, and Excise Tax expenditures at UGX 752.97 billion (0.37% of GDP).

The overall decline in forgone revenue from tax expenditures compared to FY 2022/23 is primarily attributed to a reduction in VAT expenditures, driven by improved administrative controls implemented by the URA. Notably, customs duty tax expenditures have now overtaken VAT as the largest component of total tax expenditures, reversing the trend observed in previous years

Over the past four years, the TaxDev team has worked closely with MoFPED and URA to support the development of the methodologies and analytical frameworks used in the production of these reports. This year’s report reflects the contributions of a larger team than ever before, with more than 10 staff members from MoFPED and URA actively involved in its preparation.

The full report can be accessed at: Uganda's Tax Expenditure Report 2023/24.