Abstract

This paper attempts to analyse the effects of tax incentives on the performance of Ugandan manufacturing firms in terms of gross sales and value added employing panel data estimation techniques. The study findings show that firms with tax incentives perform better in terms of gross sales and value added than their counterparts. The education level of managers of firms, firm-size, and age of the firm have positive impact on firm performance. The major policy implication of the study findings indicates that Government needs to streamline the provision of tax incentives for better firm performance.  Access to quality and technical education and skills development is necessary in order to have qualified managers with high level of management skills to utilize the available tax incentives so as to improve firm performance.

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