Domestic Revenue Mobilization for Development Annual Report 2021

The Activity commenced in January 2020 and will run until January 2025, with Nathan Associates Inc. as the prime implementing partner and Cardno Emerging Markets USA, Ltd as a subcontractor. The Activity is being delivered to the Government of Uganda through technical assistance, capacity building, and commodity support. The Activity is comprised of three components: Strengthening Tax Policy, Improving National and Sub-national Revenue Administration, and Enhancing Public-Private Dialogue. Component 1, Tax Policy Strengthened, aims to equip policymakers with the tools and skills to conduct policy analysis, evaluate, and communicate the impact of tax and non-tax revenue reforms. Component 2, Tax and Non-Tax Revenue Administration and Compliance Improved, focuses on enhancing voluntary taxpayer compliance by strengthening taxpayer education, registration, data analysis, and arrears management. Component 3, Public-Private Dialogue Enhanced, aims to build capacity within the private sector and civil society to participate in and influence tax policy reforms. The Activity has made significant progress in its first 18 months, with key activities including a diagnostic review and rewrite of the primary tax laws, a comprehensive review of the Uganda Revenue Authority (URA) structure and its human resource systems and procedures, a baseline revenue performance study, a Gender, Youth and Social Inclusion (GYSI) study, a Political Economy Analysis (PEA) study, and several preliminary engagements with non-state actors to scope areas for Public-Private dialogue. The Activity has also established strong trustful relationships with counterparts, with several DRM4D personnel and advisers embedded in URA. The Activity's vision is to address key aspects of sound tax administration and tax policy, and its policy interventions are anchored in the Ministry of Finance, Planning, and Economic Development's (MoFPED) Domestic Revenue Mobilization Strategy (DRMS) 2019/20 – 2023/24. The Activity aims to ensure that public input informs decision making on DRM-related reforms, particularly advocacy for increased investment in service delivery and increased utilization of government revenues in social expenditure. The Activity's progress is being monitored through a Performance Indicator Reference Sheet (PIRS), which tracks key performance indicators (KPIs) for each component. The Activity's strategic plan is aligned with the US Government's Development Strategy for Uganda, and its objectives are consistent with the Government of Uganda's development priorities. The Activity's implementation is being overseen by the Chief of Party, Kieran Holmes, and is supported by a team of technical experts and advisers. The Activity's geographic coverage is Uganda, with a focus on improving tax and non-tax revenue administration and compliance at the national and sub-national levels. The Activity's recommendations are based on a thorough analysis of the tax and non-tax revenue systems in Uganda, and are informed by best practices in tax administration and policy. The Activity's ultimate goal is to contribute to the improvement of Uganda's tax and non-tax revenue performance, and to support the Government of Uganda in achieving its development priorities.