Assessing the effectiveness of digital taxation models in Kampala Capital City Authority

Abstract

The purpose of this study was to assess the effectiveness of digital taxation models implemented by the Kampala Capital City Authority (KCCA) within Uganda’s evolving tax administration landscape. Specifically, the study aimed to (i) examine the level of adoption of digital taxation systems by taxpayers, (ii) identify the challenges encountered in implementing digital taxation, and (iii) explore strategies for improving digital taxation within KCCA. A descriptive research design and a quantitative research approach were employed to objectively analyse the effectiveness of the digital taxation models. The study targeted a population of 140 individuals directly involved in tax administration and compliance processes within the Uganda Revenue Authority (URA). The sample size of 103 respondents was determined using Krejcie and Morgan’s (1970) table for sample size determination, providing adequate representation of the target population. Data were collected using structured questionnaires and analysed using descriptive statistical techniques. The findings revealed that KCCA actively promotes the awareness and adoption of digital taxation systems by offering guidance and support to taxpayers. Adoption levels were strongly influenced by taxpayers’ access to technology and their digital literacy skills. Continuous technical issues, including system downtime, poor internet connectivity, and usability problems with the platform, obstructed the effective use of digital taxation systems. The study contributes to the growing body of knowledge on digital taxation in developing countries by providing empirical evidence on adoption drivers, implementation challenges, and operational inefficiencies within a major urban authority. The study recommends that KCCA strengthen taxpayer education initiatives, enhance capacity-building programmes, and invest in more reliable and user-friendly digital infrastructure to improve compliance and system effectiveness. Areas for further research include evaluating taxpayer attitudes toward digital taxation across different economic sectors, assessing the cost-effectiveness of digital tax systems, and conducting comparative studies with other urban authorities to identify scalable best practices.

Subject keywords: Digital taxation models; Kampala Capital City Authority