The effects of direct taxes on local government performance. A case study of tororo municipal council, uganda.

ABSTRACT

The study sought to establish the effects of direct taxes on local government performances and was driven by three objectives. To achieve these objectives, the researcher sampled sixty respondents (60) from Tororo municipal council. The study utilized qualitative and quantitative research methods; four data collection instruments were used, structured interview guides and questionnaires and the collected data was presented in tabular and analyzed statistically to decipher findings. The research was guided by three research questions of the study. The first research question sought to fmd out the relationship between direct taxes and local government performance and the research revealed that there is a strong link between direct taxes and local government performance in Tororo municipal council-Uganda. Research question two sought to find out the effects of direct taxes on the service delivery by the local government and the findings revealed that; education provision, medical service provision, water extension, road construction and infrastructure development were the answers given in this research question. The third research question therefore sought to find out the types of direct taxes levied by the local government and the findings revealed that; corporation taxes, property taxes, income Taxes, local service taxes, and capital gain taxes were the answers given.