Rather than focusing on economic growth, the government of Uganda is looking at ways of extracting additional tax revenues from the ICT sector. This ignores the role of the ICT sector as a contributor to other sectors of the economy. Removing all ICT sector excise duties would facilitate GDP growth, stimulate job creation and help the informal sector to become more formal, leading to a wider tax base and higher tax revenues. Economic growth will generate more tax revenues and enable investment in other parts of the economy, such as infrastructure. The ICT sector needs to be turned into a growth engine to power Uganda’s ambitious development programme.
The full policy brief can be downloaded below: