https://www.paradigmpress.org/JWE <p><a href="https://www.paradigmpress.org/JWE/about"> <img src="https://www.paradigmpress.org/public/journals/11/journalThumbnail_en_US.jpg" /> </a></p> Paradigm Academic Press Limited en-US Journal of World Economy 2709-3999 https://www.paradigmpress.org/JWE/article/view/2096 <p>Small and Medium Enterprises (SMEs) are pivotal to Uganda’s economy, contributing over 90% of private sector employment and approximately 40% of GDP, yet their tax contribution remains disproportionately low. This study investigates the persistent tax compliance challenges among SMEs in Rubaga Division, Kampala, employing a qualitative exploratory design to capture the dual perspectives of 25 SME owners and 10 tax officials. Guided by the Slippery Slope Framework, the study examines the interplay between trust in authorities and the power of enforcement. Data were collected through semi-structured interviews and were analyzed thematically. Findings reveal that tax non-compliance is driven by a complex mix of high operational costs, the digital divide exacerbated by the Electronic Fiscal Receipting and Invoicing System (EFRIS), and a deficit of institutional trust. The study concludes that enforcement-heavy strategies without corresponding trust-building measures are unsustainable. It recommends that the Uganda Revenue Authority (URA) prioritize digital infrastructure support, streamline tax procedures for SMEs, and enhance taxpayer education to foster voluntary compliance.</p> Kikomeko Joseph Copyright (c) 2026 2026-05-22 2026-05-22 5 2 1 9 10.63593/JWE.2026.06.01