Domestic Revenue Mobilization for Development Activity Quarterly Report 1st Quarter – October 1, 2020 to December 31, 2020

The activity commenced on January 21, 2020, and runs through January 20, 2025. The primary goal of the activity is to support Uganda in strengthening the tax culture, increasing voluntary compliance, and sustainably increasing domestic revenue mobilization. The project is comprised of three components: Strengthening Tax Policy, Improving National and Sub-national Revenue Administration, and Enhancing Public-Private Dialogue. The support is being delivered to the Government of Uganda (GoU) through technical assistance, capacity building, and commodity support. The activity is focused on equipping the Ministry of Finance, Planning, and Economic Development (MoFPED), the Uganda Revenue Authority (URA), and other policymakers with the tools and skills to conduct policy analysis, evaluate, and communicate the impact of tax and non-tax revenue reforms. During the reporting period, the activity remained focused on engaging with URA and MoFPED to strengthen and boost short-term revenue collections. Several activities were started, including a comprehensive review of the URA HR structure, the URA human resource development and integrity reform, an audit of the URA IT systems, and a diagnostic assessment of local government revenues. Other activities, such as the diagnostic review of the primary tax laws and the GYSI analysis, were progressed during this quarter. The activity continued to work with counterparts in MoFPED on the reform of primary tax laws and the excise, environmental, and gaming tax regime. Support was provided to draft legislation, and a Scope of Work was prepared for a consultant to review and enhance the excise duty, environmental tax, and gaming regime in Uganda for FY 2021/2022. The consultant is focused on alcohol and tobacco excise taxes, and the next steps are for the consultant to conduct simulations to recommend optimal excise rates for tobacco and cigarettes. The activity also worked closely with MoFPED in refining the tax policy training program for MoFPED, URA, and other officials. Meetings were held between MoFPED and the two potential training providers, University of New South Wales and the International Bureau for Fiscal Documentation (IBFD). MoFPED preferred the training program to be delivered by the University of New South Wales. The activity has made significant progress in the first quarter of Work Plan year two, with several activities started and others progressed. The next steps for the activity include supporting counterparts to appreciate and implement recommendations from the reports, including the URA structure review, the URA IT systems audit, and the DRM4D baseline study report.