Assessment of the effects of Covid-19 on revenue collection: a case study of Uganda as a country

Abstract

The main objective of this study was to assess the effects of Covid-19 on Revenue collection in Uganda with specific objectives of assessing the trend of revenue collection before Covid19 and assessing the Covid19 after effects in the trends of revenue collection. Data was obtained from the Uganda Revenue Publications. Annual revenues and time are the key variables used. Data was obtained from the period 1992-2021 making a total of 29 observations. The study employed the ARIMA time series model to determine the trend of the revenue collection before and after Covid19. The study found out that there was a negative effect on revenue collection by Covid 19. Results from the study showed that after and before Covid-19, revenue collection was increasing at a steady rate but later increased at a low rate in (2019/2020) which was due to Covid 19. From the data, in FY 2018/19 Net Revenue increased by 14.95% and in FY2019/20 it increased by 0.8% then in FY2020/21 there was an increase by 14.99%. In conclusion, Covid 19 had a negative impact on Revenue collected, therefore the study recommends the government to set up different sources of revenue besides taxes, this could be in creating business where it can generate revenue from rather than just relying on taxes