This paper examines the challenges and opportunities shaping tax administration in Uganda, a low-income country striving to
expand its fiscal capacity amid rapid economic growth and persistent governance constraints. Drawing on administrative data, key
informant interviews, and comparative analysis, we assess the evolution of Uganda’s revenue system from colonial legacies to post-
independence reforms, focusing on the Uganda Revenue Authority (URA) as the central institutional actor. We analyze core
functions—taxpayer registration, compliance management, audits, and enforcement—highlighting how capacity deficits, corruption
risks, and informality undermine revenue performance. The study explores the impact of digitalization (e.g., e-tax platforms and
mobile money integration) on broadening the tax base, alongside persistent equity concerns, including regressive local taxation and
the limited taxation of high-wealth individuals and multinational corporations. We evaluate donor-supported reforms, political
economy dynamics, and decentralization tensions that complicate harmonization between central and local revenue collection.
Findings underscore that while Uganda has achieved nominal revenue gains, structural bottlenecks—fragmented data systems,
politicized exemptions, and weak taxpayer trust—constrain sustainable progress. The paper concludes with policy recommendations
emphasizing institutional autonomy, simplified regimes for micro-enterprises, and targeted anti-corruption measures to align tax
administration with Uganda’s development priorities.