The government has ruled out enacting new taxes or raising existing ones in the fiscal year 2023–2024. The action aims to assist the private sector in navigating a challenging economic environment marked by high inflation and weak demand.
The government has also stated that there won’t be any tax reductions during the 2023–2024 fiscal year, noting that the emphasis will be on boosting economic productivity, putting reforms into place, and improving public sector efficiency.
According to Mr. Ggoobi, the Ministry of Finance will work to increase the tax base through the rational use of tax incentives and exemptions, and will put in place a framework for monitoring beneficiaries’ progress as well as the benefit to the government.
The government is thought to lose 2. 1 percent of its revenue due to tax incentive and exemption yet the country’s tax to gross domestic product ratio remains one of the lowest in East Africa and sub-Saharan Africa .