Background information

In 2020, Government of Uganda adopted a National Domestic Revenue Mobilization Strategy (DRMS) 2019/20-23/24; for mobilizing government revenues, to guarantee a reasonable, realistic, and practical approach to sustainably raise financial resources. The strategy represents the next step in government’s fiscal policy reform to promote economic development of Uganda. One of the key structural fiscal policy reforms in the DRMS was the adoption of the tax expenditure governance framework.

Later GoU and development partners embarked on implementing the policy proposal from plan to action and this involved the World Bank proposing an expenditure Governance Framework with the following steps:

  1. Generating a Tax Expenditure repository (Legal review of tax laws and defining a benchmark tax expenditure).
  2. Quantification of revenue foregone due to TEs.
  3. Developing tools to assess efficiency, impact, and equity.
  4. Fiscal Governance: Clarity in the authorizing environment, for TEs and disclosure requirements.

Two Tax Expenditure reports relating to FY 2019/2020[1] and FY 2020/2021[2] have been published by the Ministry of Finance, Planning and Economic Development assessing the impact of tax incentives on revenues.

Justification

Uganda is estimated to be losing an estimated USD 1.5 billion per year of tax revenues due to tax expenditures. Under outcome 3.9 of the National Development Plan III, GoU has committed to establish a governance framework on tax expenditure[3]. It is therefore imperative to conduct a critical assessment of Uganda’s Tax expenditure management process of creating, reporting, and evaluating tax expenditures. The purpose of the analysis is to evaluate the current Tax Expenditure (TE) management framework beginning with the creation of TEs, reporting of TEs and the evaluation of the TE. This analysis will compare the current Ugandan TE management framework to the global best practices established by OECD and World Bank. The study will provide guidance on how the Ugandan TE management process can be improved to match up to the international best practice. The study will generate policy reform proposals for the improvement of the TE management process and will inform the TE governance framework currently being developed.

Over-all aim of conducting the study

  1. To generate credible evidence for influencing policy reform on tax expenditure management in Uganda.

Specific objectives

  1. To understand the current Tax Expenditure management framework in place in Uganda.
  2. To describe the International Best Practices on TE management as laid out by World Bank and OECD.
  3. To compare the current TE management framework in place in Uganda to the International Best Practices.
  4. To make policy recommendations for the improvement of the TE management framework.

Activity outputs and timeline

The study is intended to be conducted between Mid-November and December 2022.

The consultant (s) will produce a report detailing the current Tax Expenditure management framework in Uganda in relation to the International Best Practices on TE management as laid out by World Bank and OECD and key policy recommendations for the improvement of the TE management in Uganda

Support plan

A team of consultant(s) shall be hired to execute the analysis; and will work directly with Oxfam and selected partners.

The proposed consultancy schedule is shown below:

  1. Call for expression of interest: 09th November 2022.
  2. Submission of expression of interest: 21st November 2022.
  3. Selection of consultants and contract signing: 25th November 2022.
  4. Conduct study: 1 month period.
  5. Submission of final assignment report: 1 month from signing of contract.

Management of the process

The Consultancy company will be working closely with the Governance and Accountability Program Manager with support from the Finance for Development Coordinator at Oxfam in Uganda.

Qualifications of the Consultant

The consultant (consultancy company) shall propose suitable consultant/s who should have the following qualifications:

  1. A lead consultant shall be with expertise in Taxation or and economics, Public Finance
  2. Practical experiences in undertaking similar tasks will be an added advantage.
  3. A team of consultants with expertise in the technical focus areas is an advantage.
  4. Excellent research, synthesizing and communication skills are crucial

Method of application

The consultant/s will submit via email only.

  1. A detailed technical proposal showcasing your understanding of the assignment.
  2. A CV or (CVs if it is a team) and an Expression of Interest.
  3. A financial proposal with an indicative budget including taxes.

Submission deadline is by COB 21st November 2022 to ugandalogistics@oxfam.org Send the documents as one PDF document

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