Federation of Small and Medium-Sized Enterprises

At @Parliament_Ug today, we have had a promising engagement with the Committee of Finance, Planning and Economic Development, on the importance of affordable access to digital economy. In line with the public comment phase under the process of Tax (Amendment) Bills, 2026/27, we, alongside @CSBAGUGANDA, proposed the following: 1⃣Under the Excise Duty Act, Cap 336, FSME proposes amendments to the excise duty on mobile money cash withdrawals, reducing the excise duty rate on mobile money cash withdrawal transactions from 0.5% to 0.25% of the transaction value, with a maximum cap of Ushs 5,000 per transaction. 2⃣Under the External Trade Act and the Value Added Tax Act, FSME further proposes the removal of import duty on entry-level smartphones (CIF value up to UGX 500,000) by applying a 0% rate under HS Code 8517.13.00 and zero-rating VAT on these devices. The executive director of @fsme_uganda, @JohnWalugembe said reducing the excise duty on mobile money cash withdrawals will ease the burden on lowincome earners and MSMEs who rely on digital payments for daily transactions. 📱"As more Ugandans transact using Mobile Money, the number of MM agents will increase, creating much-needed jobs," he said. He added: "Similarly, as more users access entry-level smartphones and come online, digital transactions will increase, boosting government revenue through various channels, including mobile money levies, excise duties on telecom services, PAYE, and corporate tax from digitally enabled businesses. The ecosystem for smartphones will also be catalyzed to grow." #UgTaxBills26 #DigitalTaxUG26 @mofpedU @mtnug @mtnmomoug @SEATINIUGANDA @JuliusMukunda @UCC_Official

We are hosting @PUM_nl expert in poultry management, Francoise de Goeijen who is in Uganda to support women-led SMEs in poultry value-chain, with modern practices to realise better yields. She has today visited Lillian Kyazze at Daliz Chicken Hub and Joy Mary Lwanga of Shalom Organic Farm at their enterprise premises where they explored opportunities of growth, discussed access to better in-puts and market. Over the next weeks, Francoise will mentor 20 women in poultry, who are under the @WEADS_project. The project aims to accelerate the growth and impact of 100 women-led Agri-SMEs in different value chains including poultry, coffee, fruits & vegetables, diary and potatoes.

Our call to @GovUganda is, reducing or removing import duty and VAT on entry-level smartphones will expand digital inclusion, empower entrepreneurs, and accelerate Uganda’s progress toward a knowledge-based economy. #DigitalTaxUG26 #UGTaxBills26 @mofpedU @Parliament_Ug @NITAUganda1 @MoICT_Ug @mtnug @mtnmomoug @JohnWalugembe @CSBAGUGANDA @UCC_Official

Beyond the FY2026/27 Tax Amendment Bills, @The_EastAfrican emphasizes our stance on financial inclusion for all on pg 28 We call on the reduction of withdrawal of mobile money transactions to 0.25% and removal of taxes on entry level smartphones currently subject to a 28% tax. #DigitalTaxUG26 #UgTaxBills26 @mofpedU @GovUganda @fsme_uganda @Parliament_Ug @ACODE_Uganda @SEATINIUGANDA @IMFAfrica @WorldBankAfrica @ACODE_UGANDA @JuliusMukunda

"As more Ugandans transact using Mobile Money, the number of MM agents will increase, creating much-needed jobs," @fsme_uganda told legislators on the committee." - Reports @nilepostnews. #DigitalTaxUG26 #UGTaxBills26 @mofpedU @Parliament_Ug @NITAUganda1 @MoICT_Ug @mtnug @mtnmomoug @JohnWalugembe @CSBAGUGANDA @UCC_Official #google_vignette" target="_blank" rel="nofollow noopener">nilepost.co.ug/news/335469/sm…

Live on @bbstvug this morning, FSME executive director @JohnWalugembe discusses the cost of digital tools and services as the major hindrance towards inclusive growth in today's economy. This is why we have called for reduction on taxes on Mobile Money withdrawals from 0.5% to 0.25% to allow encourage digital finance adoption as well as the zero-rate tax on entry-level smartphones below sh500,000 to enable acquisition of digital gadgets for business. #DigitalTaxUG26 #UGTaxBills26 @mofpedU @Parliament_Ug @NITAUganda1 @MoICT_Ug @mtnug @mtnmomoug @JohnWalugembe @CSBAGUGANDA @UCC_Official @GCICUganda @GovUganda

While appearing before Parliament of Uganda’s Committee of Finance, Planning and Economic Development on Tuesday, @fsme_uganda called for reductions of excise duty on mobile money and entry-level smartphones.- @ChimpReports #DigitalTaxUG26 #UGTaxBills26 @mofpedU @Parliament_Ug @NITAUganda1 @MoICT_Ug @mtnug @mtnmomoug @JohnWalugembe @CSBAGUGANDA @UCC_Official @GCICUganda @GovUganda chimpreports.com/smes-want-tax-…

#DigitalTax26 #UGTaxBills26 #DigitalTaxUG

Luweero Entrepreneurs Trained to Grow Businesses Using Smartphones. #NilePostNews nilepost.co.ug/news/335434/lu…

The #BusinessKuSsimuYo campaign started a series of workshops across the country. 📍We have been in Luwero this week, where digital experts supported MSMEs to adopt and use smartphones as tools to grow businesses. Our message was clear: ➡️Digital tools are a pathway to growth, financial access, and visibility. Through this campaign, @UNCDF and @OutboxHub, in partnership with : @MastercardFDN are building a pipeline of digitally capable, visible, and investment-ready women-led MSMEs across Uganda. Because when women go digital, businesses grow and communities thrive. #BusinessKuSsimuYo #10XDigitalEconomy #10Xprogram @xentetech @chapchapafrica @refactory_acad

@CSBAGUGANDA we are passionate about the Digital Tax and hope that the mobile money withdrawals is reduced to 0.25% and cap it at UGX5000 to increase financial inclusion. #DigitalTaxUG26 @mofpedU @Parliament_Ug @GovUganda @fsme_uganda @BOU_Official @WorldBank @IMFNEWS @ACODE_Uganda @SEATINIUGANDA @JuliusMukunda

Insightful discussion by various policy experts here on digital taxes in Uganda.

The Big Talk on @nextradio_ug: @CanaryMugume asks: Don’t these proposals from FSME contradict government’s Vision 2040 and NDP IV? @JohnWalugembe answers: Vision 2040 recognizes the role of digital. It envisions that ICT will improve productivity. NDP III & IV committed government to reducing the cost of entry-level smartphones. What is the way to do this? We think that the best way is remove the 28% burden. Let us zero-rate on entry level smartphones. By the way, government want these small businesses to formalize, and most efficient way of formalizing the economy is through digital services. We need to make the services affordable to MSMEs. We talk to MSMEs owners regularly, and 34% of them say cost of digital tools is the main problem. @Parliament_Ug #DigitalTaxUG @MoICT_Ug @mtnug @UCC_Official @GCICUganda

“As the federation, we have been doing Digital Literacy trainings for a long time (Since 2018 with our #DigitalSkills4SMEs). We have realized that the biggest challenge now is access to the smartphones. That is why we ask government to lower the cost of acquiring a smartphone by removing 10% import duty and 18% VAT on entry level gadgets.” - FSME executive director @JohnWalugembe.

.@JohnWalugembe: Africa’s young population stands to benefit immensely from the digital economy. It could create up to 625 million jobs globally if fully leveraged. For countries like Uganda, the digital economy is not optional, it’s an opportunity we must harness. #NextBigTalk #NextRadioUg

“MSMEs contribute over 70% of Uganda’s GDP. With affordable digital tools and services, MSMEs will be more visible and productive, by using platforms such as Tik Tok to market their goods and services and keep record digitally. This is will help them to formalize.” #UGTaxbills26 #DigitalTaxUG

Vision 2040 talks of ICT-enable services. To ensure that some members of the population are not left behind, digital services and tools should be affordable to all.

We are live on @nextradio_ug discussing digital tax. Our executive director @JohnWalugembe says the current tax regime on digital services and tools such as Mobile Money and Smartphones. “As part of the discussion on budget, let us reduce the excise duty on Mobile Money from 0.5% to 0.25%. Government will earn more from digital adoption.” #DigitalTaxUG26 #UGTaxBills26 @nbstv @mofpedU @Parliament_Ug @NITAUganda1 @MoICT_Ug @mtnug @mtnmomoug @JohnWalugembe @CSBAGUGANDA @UCC_Official

COMING UP: #NextBigTalk with @CanaryMugume. The Heavy Administrative Burden of Uganda's 2026 Digital Tax Reforms: Compliance or Coercion? Stream live on @afromobileug! #NextRadioUg