Shifting Tax Burdens through Exemptions and Evasion: an Empirical Investigation of Uganda
AbstractThis paper investigates the impacts of tax reforms implemented in Uganda in the mid-1990s on the prevalence of tax evasion and exemptions among firms, and their effects on the distribution and dispersion of tax burdens. Based on firm-level data collected from 243 firms, we observe that evasion and exemptions were widespread and that their prevalence actually increased during tax reforms. We use three-stage least squares to simultaneously estimate tax burdens, evasion and exemption patterns in 1995 and 1997. We find that tax exemptions benefit large businesses to a disproportionate degree, while evasion is more common among small businesses. This creates a situation in which medium-sized firms shoulder a disproportionate tax burden. Copyright 2006, Oxford University Press.
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Bibliographic InfoArticle provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.
Volume (Year): 15 (2006)
Issue (Month): 3 (September)
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- Gauthier, Bernard & Reinikka, Ritva, 2001. "Shifting tax burdens through exemptions and evasion - an empirical investigation of Uganda," Policy Research Working Paper Series 2735, The World Bank.
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