Uganda and Malaysia Seek Tax Incentives Reforms

Uganda's Prime Minister Nabbanja highlighted the essential role of local investors in the nation's economic growth, emphasizing the need for a streamlined tax incentive framework to address complexities and ensure fairness. The government aims to balance tax incentives with revenue protection, as noted by Treasury Secretary Ramathan Ggoobi, who reported an increase in the revenue-to-GDP ratio from 8.9% to 14.3% over the years. In Malaysia, the Federation of Malaysian Manufacturers (FMM) urged the government to reduce corporate taxes and expand tax incentives in the upcoming Budget 2025 to enhance competitiveness and align with global economic trends. FMM President Soh Thian Lai advocated for double tax deductions for green initiatives and proposed a RM2 billion ESG fund to support SMEs. Additionally, he stressed the importance of upskilling local talent to reduce dependency on foreign expertise and suggested reintroducing the Goods and Services Tax at a lower rate to stabilize revenue. Both countries are focusing on tax reforms and incentives to foster economic growth and attract investments.