In Uganda there are limited large scale companies and business enterprises from which to raise corporate taxes.

The need by the government to attract foreign investors limits the use  of direct taxes. Such investors are given  tax rebates and tax  holidays.

In Uganda there exists a large number of poor people hence limiting income taxes.

The rampant unemployment problem also makes the government to relax  on direct taxes.

In Uganda there is  hardly any accountability and proper records by the business  class hence taxes  like capital gains tax  become difficult.

There is also a limited range of direct taxes in Uganda hence less revenue realized  from direct  taxes .

The narrow tax base also limits direct taxes.

The need to rally political support makes Uganda to limit its reliance on direct taxes.

In Uganda there still exists a large substance sector.