Uganda is one of the countries most exposed to recent cuts in international aid, particularly with the dissolution of the US Agency for International Development (USAID). In 2023, about 5% of gross national income – a measure of a country’s total income, including income from foreign sources – was received in aid.
The cuts have given new impetus to the drive to increase taxes raised from domestic businesses.
Less than half (45%) of the Ugandan budget is financed through domestic revenue. The remainder is funded largely through debt and budget support (grants) from bilateral and multilateral donors. Corporate income tax makes up around 8% of total domestic revenue. Firms also collect employee income tax (pay-as-you-earn), value added tax, excise duties and fuel duties.
