Title: When IRAS Fails the Test: The Pros and Cons of Local Government Tax Collection in Uganda
Authors: Dr. Arinaitwe Julius
Akampulira Sarah
Nabaasa Desire
Volume: 10
Issue: 5
Pages: 453-460
Publication Date: 2026/05/28
Abstract:
Local government tax collection in Uganda has emerged as a critical but contested frontier in fiscal decentralisation, particularly following the partial devolution of revenue administration responsibilities to Kampala Capital City Authority (KCCA) and the concurrent deployment of the Integrated Revenue Administration System (IRAS). This study investigated the performance, limitations, and stakeholder perceptions of local government tax collection in Uganda's five Kampala divisions - Central, Nakawa, Makindye, Rubaga, and Kawempe - over the period 2018 to 2022. Employing a concurrent mixed-methods design, the study combined panel data regression with thematic analysis of 62 key informant interviews and 14 focus group discussions. Quantitative findings, derived from logistic regression and fixed-effects panel models, revealed that awareness of tax laws (? = 1.842, p < 0.001), perceived service quality (? = 1.615, p < 0.001), and trust in local government (? = 1.538, p < 0.001) were the strongest predictors of tax compliance, while IRAS system familiarity registered the lowest significant coefficient (? = 0.755, p = 0.003), pointing to persistent accessibility and literacy barriers. Collection rates across divisions averaged between 55.2% and 84.5%, with Makindye and Kawempe recording the worst performance and highest resistance indices, particularly in 2020. Panel fixed-effects estimates confirmed a robust positive association between tax revenue and all major service delivery indicators, with road maintenance (? = 0.412, p < 0.001) and solid waste collection (? = 0.388, p < 0.001) demonstrating the strongest sensitivity to fiscal flows. Thematic analysis identified eight dominant resistance narratives, the most prevalent being perceived service failure (n = 62), distrust in revenue utilisation (n = 58), and IRAS complexity (n = 49). The study concluded that IRAS, while conceptually sound, has underperformed due to systemic capacity deficits, infrastructure barriers, and a breakdown in the social compact between taxpayers and local government. Recommendations target system redesign for informal sector inclusion, strengthened accountability mechanisms, and community-based fiscal education campaigns.