Domestic Revenue Mobilization for Development Activity Quarterly Report 3rd Quarter: April 1, 2021 to June 30, 2021

The Activity commenced on January 21, 2020, and runs through January 20, 2025, and is being implemented by Nathan Associates Inc. in partnership with subcontractor, Cardno Emerging Markets. The Activity 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 goal of the Activity is to create fiscal space for public spending and investments in priority sectors such as health, education, and agriculture. Component 1: Tax Policy Strengthened is designed to equip 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. This component aims to operationalize the key policy tenets of the country's Domestic Revenue Mobilization Strategy (DRMS). Component 2: Tax and Non-Tax Revenue Administration and Compliance Improved is focused on enhancing voluntary taxpayer compliance by strengthening taxpayer education, registration, data analysis, and arrears management. The component also aims to expand support to new areas to address emerging compliance risks and operationalize the key administrative tenets of the DRMS. At the sub-national level, the focus is on identification of options for tax and non-tax revenue mobilization for a selected number of local governments. Component 3: Public-Private Dialogue Enhanced is designed to build capacity within the private sector and civil society to participate in and influence tax policy reforms and contribute to an informed dialogue on taxation. DRM4D will ensure that public input informs decision making on DRM-related reforms, in particular advocacy for increased investment in service delivery and increased utilization of government revenues in social expenditure. The Activity is premised on the notion that increasing tax and non-tax revenue contributes positively to the funds available and enables the government to increase its expenditure on fundamental priority sectors such as health, education, and agriculture. The development hypothesis behind this is that, "IF Ugandan citizens actively engage and participate in their development and if the capacity of key country systems to provide critical services is strengthened - including the enabling environment supporting functional systems and the development of transformative leadership - THEN key country systems will be more accountable and responsive to Uganda's development needs." The Activity is being implemented under USAID/Uganda's existing 2016-2021 Country Development Cooperation Strategy (CDCS 2.0.), whose goal is "Uganda's Systems Are Accelerating Inclusive Education, Health and Economic Outcomes" and has resilience, demographics, and systems strengthening as its major themes. The Activity aims to achieve greater opportunities in the collection of tax and non-tax revenues, including through more stable and equitable revenue policies, and create the fiscal space to address persistent gaps in social sector financing.