Equity in Uganda’s Withholding Tax on Resident Employment Incomes

A Systematic Review

Abstract

Public policy must consider the intricate relationship between social justice, economic fairness, and taxation equity. Uganda's employment income withholding tax policy aims to efficiently raise revenue, but its impact on equity remains underexplored. This systematic review investigates the equity implications of Uganda's withholding tax policy across different income groups, examining its alignment with principles of fairness. Comprehensive searches were conducted across multiple databases, including PubMed, Scopus, JSTOR, and Google Scholar, using keywords such as "equity," "withholding tax," "employment incomes," "Uganda," and "tax policy." Studies were selected based on predefined inclusion criteria, focusing on those addressing equity within the context of Uganda's tax policy. Standardized tools were used for data extraction and quality assessment, and the findings were synthesized qualitatively. The review encompasses 12 studies, providing diverse insights into the equity effects of Uganda's withholding tax policy. Results indicate a mixed impact on various income groups, with some studies highlighting progressive elements of the policy, while others reveal regressive outcomes disproportionately affecting lower-income earners. The review identifies key areas for policy enhancement, such as improved targeting of tax rates and brackets to foster greater equity. This systematic review underscores the complexity of achieving equitable tax policy. To enhance fairness in Uganda's withholding tax system, policymakers must pursue comprehensive reforms addressing both structural and implementation challenges.