Uganda's informal sector: Closing the tax gap

Uganda's informal sector: Closing the tax gap

Uganda's informal sector is a powerhouse, contributing an estimated 49% to the nation's Gross Domestic Product (GDP) and providing livelihoods for over 60% of the working population.  Despite its economic muscle, this vast segment of the economy largely operates outside the formal tax system.  This widespread non-compliance is a major headache for the Uganda Revenue Authority (URA), as it severely undermines efforts to boost domestic revenue and…