Uganda  has a small number of people  who are employed and this  lowers the taxable  population.

Many areas  of Uganda still maintain a large subsistence sector which can't be taxed.

The need  by the government to encourage  private local plus foreign investors makes  it to exempt  them from  taxation by offering  them tax holidays.

Uganda has a smaller industrial sector  which limits  company tax.

The  need for  the government to rally political support makes  it to exempt some people from taxation  while lowering taxes  on others.

The fear  of possibilities of tax relations by trading  countries lowers Uganda's  taxable  base  on imports.

Uganda  has inadequate trustworthy tax assessors and collectors.

The existence  of  inequalities  in  incomes further  narrows the tax base.

Most people are self employed either in business or agriculture and this  makes it  quite difficult to  impute or  know ones income in order to determine the  taxable income.

Most wealthy people tend to hold  influential responsibilities in the  government hence  only a narrow range of the wealth  is assessed  and taxed.

Political instability  and strifes also limit taxation sources in other regions of the country.

There are many loopholes in the taxation sources in other regions of the country.

Uganda produces  a limited range of local  products and this  limits indirect taxes such as excise duty. Another factor is that customs duty is limited  by the need to encourage importation of industrial inputs. Lastly, the seasonal nature of Agriculture limits taxation within the agriculture sector.