Despite ongoing efforts, Uganda’s revenue performance has consistently fallen short of meeting its budgetary needs. The country’s tax-to-GDP ratio has stagnated at a low 13%, according to 2019-2020 data from the Uganda Revenue Authority—well below the Sub-Saharan average of 16%. This revenue shortfall hinders Uganda’s ability to finance public expenditure and run its economy effectively. To mitigate this, the Government of Uganda has acknowledged and developed a Domestic Revenue Mobilization Strategy (DRMS) aimed at increasing revenue generations to plug is budget deficits. Several development partners are supporting the Domestic Revenue Mobilization space, including our USAID-funded Domestic Revenue Mobilization for Development (DRM4D) Activity, which is contributing to Uganda’s domestic revenue mobilization efforts.

The DRM4D Activity, which runs from February 2020 to January 2025, works to strengthen tax culture, increase voluntary compliance, and sustainably increase domestic revenue mobilization. To achieve this, USAID contracted Cadmus (formerly Nathan Associates Inc.) to implement the Activity, with DT Global serving as a subcontractor until July 31, 2024. DT Global has contributed to the development of activities for tax administration under Project Component 2 and public-private dialogue on tax issues under Project Component 3, while also supporting other project deliverables as needed.

As a subcontractor, DT Global contributed to the following areas in support of the project objectives:

• Developed a capacity building training manual and trained city officials and politicians on good practices and leadership in revenue administrations.
• Developed revenue improvement plans to enable more evidence-based budgeting and forecasting of local revenues and spending on priority services.
• Coordinated and collaborated with various stakeholders, including local government officials, private sector organizations, and other project partners, ensuring that all initiatives were aligned with project goals and encouraging the improvement of revenue collection efficiency at the city level.
• Supervised three consultants conducting valuations of over 165,000 properties to enable cities to collect property tax, resulting in a doubled collections in 2020/2021 and 2023/2024 fiscal years.
• Collaborated with consultants conducting reviews of revenue regulatory frameworks for local governments.
• Worked with consultants conducting digital systems audits for local government Revenue Administration Systems.
• Assisted cities in conducting engagement meetings with taxpayers and developing Fiscal Social Compacts to enhance accountability, increase public trust, and monitor implementation. These efforts have significantly improved relationships between taxpayers and city officials.
• Partnered with cities and private sector organizations to promote the digitization of street parking charge collection and market user fees.