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Taxation for investment in Uganda agricultural sector

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Policy Briefs

Taxation for investment in Uganda agricultural sector

The Ugandan agricultural sector is grossly underfunded. The Ministry of Agriculture Animal Industry and Fisheries receives only 3 percent of the national budget despite the sector accounting for 70 percent of employment in the country. On the other hand, over the past 15 years, the agricultural sector has been a major beneficiary of tax exemptions. Recent attempts to change the tax exemption regime for sector were met with resistance. This brief examines the various ways through the agricultural sector has benefited from tax exemptions and identifies some of the beneficiaries of tax reforms. We shows that future attempts to realize taxes from agriculture should be balanced by increased support to the sector.

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  • Published Feb 10, 2016
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