ACTION AID ADVISES GOVERNMENT TO MINIMIZES TAX INCENTIVES TOWARD FOREIGN DIRECT INVESTMENT TO ENSURE PRUDENT FISCAL MANAGEMENT

 Action Aid has advised that the government minimizes the tax expenditure targeted at Foreign Direct Investment –FDI- to ensure maximum prudent fiscal management for local development programmes. 

Speaking in an interview with Phoenix News, Organisation Project Officer, Faith Mukwasa notes that the 2024 national budget outlines uniform incentives to both foreign and local investors but that the latter is disadvantaged due to low access to finance, unskilled workforces and limited access to technology.

She says to maximize resources available for national development programs, governments can consider resource mobilization by identifying and tapping into various sources of funding, including domestic and international sources, public and private sector funding, and innovative financing mechanisms.

Ms Mukwasa says similarly at global level, concerted policy efforts should be deployed to limit other financial flows and other forms of tax evasion.