Uganda Revenue Authority has expressed concern towards the failure by various companies to provide an economic benefit to the Nation despite being given a 10 year tax holiday at the cost of the tax payers.
This follows a study conducted by URA in collaboration with the United Nations University based in Finland to find out if companies that have benefited from tax incentives have had a positive economic impact.
According to Nicolas Musoke an officer at the research and innovation division of Revenue Authority, taxes to a tune of over 160 billion have been lost to incentives given to various companies dealing in value addition on various local products, mainly agriculture.
According to the study, firms having these the large tax holidays, have expanded ,made profits but have not employed more people as had been expected.
Nicholas Musoke says these firms without these incentives would still have remained profitable and that incentives have had no significant influence on their level of profitability.