Is VAT on Agricultural Inputs Cost Effective

This policy brief summarizes the results of preliminary analysis to quantify the potential farm-level and aggregate impacts of the proposed imposition of 18% value added tax (VAT) on key agricultural inputs in Uganda. Results reveal that the potential costs of the proposed imposition of VAT on agricultural inputs appear to far outweigh the potential benefits. The proposed measure undermines basic agricultural and broader economic growth and development objectives; and the ratio of benefits to costs renders proposing VAT unjustifiable based on economic arguments. The brief recommends a reconsideration of the proposal and that alternative sources of revenue are sought.

Date: 2014-08-13

Author: Swaibu Mbowa, Steven Were & Joseph Rusike

File Name: Is VAT_on Agricultural_Inputs_Cost Effective PB48.pdf
File Size: 832.72 KB
File Type: application/pdf
Created Date: 08-13-2014
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