Open AccessImpact of Petroleum Excise Tax Costs on Firm Productivity in Uganda
Author(s) -
Julius Opiso,
Stephen Korutaro Nkundabanyanga,
Sulait Tumwine,
Twaha Kigongo Kaawaase,
Livingston Senyonga,
Simon Echegu
Publication year - 2022
Publication title -
journal of energy research and reviews
Language(s) - English
Resource type - Journals
ISSN - 2581-8368
DOI - 10.9734/jenrr/2022/v10i430263
Subject(s) - excise , productivity , ad valorem tax , tax revenue , economics , value added tax , tax reform , tax credit , welfare , indirect tax , business , public economics , monetary economics , macroeconomics , market economy
The aim of this paper is to investigate the effects of petroleum fuel excise tax costs on productivity of generator-reliant firms in Uganda. Most studies investigated the association between corporate tax and firm productivity, value added tax and firm productivity. This study contributes to the neglected area on the influence of petroleum excise tax costs on firm productivity. In this paper, we employ the ordinary least square (OLS) method for estimations. The results show a negative impact of petroleum fuel excise tax costs on the productivity of manufacturing firms, driven by the severe tax burden. In addition there is a negative significant association between tax cost and household welfare. Therefore tax policy actors should formulate policies that not only raise tax revenue but also boost business growth.