Local Tax Reforms and Intergovernmental Fiscal Transfers Policy: The Relevance of Governance Forum

Abstract

Submitted : 21.07.2020 Revised : 09.10.2020 Accepted : 11.11.2020 Available : 29.12.2020 This study invokes fiscal federalism literature by examining tax reformsintergovernmental fiscal transfers policy relationship in local government. Additionally, it investigates whether a governance forum mediates that association. Data from eight districts, two municipalities, and 80 subcounties in Uganda's North-Western region were tested employing structural equation modeling. For quite a long time, Uganda, an East African country, has been acclaimed for its federalism proficiency. Findings indicate that: much as tax autonomy, coordination capacity, tax inconsistency, and corruption; notable tax reforms attributes, predict transfers policy changes, governance forum plays no mediation role in the tax reforms-transfers policy set-up. Implications for theory-researchpractice triangulation are discussed, and future research direction has also been proposed. iThenticate similarity score: 8% JEL classification: H29, H71, H77