Evidence from Uganda

Since the 1990’s, Uganda tax system has undergone various reforms. However, both tax policies and reforms have been formulated without clearly indicating the channels through which gender impacts on these policies/reforms. Using the national household survey of 2005/06, this paper provides insights into how tax policies and reforms on indirect taxes impact differently on women and men. The incidence rate of tax by gender-based household typologies controlled by expenditure quintile brings out interesting findings. The incidence rate of indirect tax is significantly greater on households headed by male compared to their female counterparts regardless of income level. This also holds after controlling for the presence of children. More importantly, the impact on different household typologies is largely influenced by differences in consumption patterns. Future tax reforms should take these gender differences in account as a means of improving the social welfare of every Ugandan. Our policy simulations yield some interesting results. Tax reforms on goods and services which are regressive in nature will significantly reduce the tax burden of households with female heads than comparable households with male heads; but at the same time will resul