Sustainability Of Tax Reforms In Developing Countries: The Ugandan Case

Abstract

In developing countries such as Uganda, tax reforms play a critical role in driving economic growth and ensuring the delivery of public goods and services. However, the sustainability of these reforms depends on establishing and maintaining a strong social compact between the government and its citizens. This study is premised on social contract theory and institutional theory, explores Uganda’s tax reform dynamics with a focus on their long-term impact on democratic governance, social justice, and economic development. This paper explores the sustainability of tax reforms in Uganda through a comprehensive analysis of key factors influencing the effectiveness and long-term viability of tax policies. Tax reforms have a specific role in shaping the economic landscape of any nation when it comes to development policy. By analyzing the interplay between tax policies, public perceptions, and democratic participation, the study sheds light on the factors influencing the sustainability of tax reforms in Uganda. The findings contribute to theoretical understanding and practical policy recommendations for fostering a sustainable social contract through taxation, thereby advancing the goals of inclusive development and good governance in the region. Additionally, the study analyzes the institutional capacity and governance structures underpinning tax administration and policy implementation, highlighting areas for improvement to ensure the continued effectiveness and resilience of the tax system. By offering insights into the sustainability challenges and opportunities facing Uganda's tax regime, this research informs policymakers, practitioners, and stakeholders engaged in fiscal management and economic development strategies.