John Teira retweetledi
Yesterday in my remarks while presenting the
Tax Bills for FY 2026/27 to the Finance Committee of @Parliament_Ug i said @GovUganda projects to generate UGX 1,741 billion in FY 2026/27 from the tax policy proposals contained in the bills and UGX 3,164 billion from URA administration measures, which contributes to the projected revenue effort of 15.5% of GDP, representing a growth of 0.6 percentage points .
TAX BILLS:
✅️The Income Tax (Amendment) Bill, 2026;
✅️The Excise Duty (Amendment) Bill, 2026;
✅️The Value Added Tax (Amendment) Bill, 2026;
✅️The Tax Procedures Code (Amendment) Bill, 2026;
✅️The Stamp Duty (Amendment) Bill, 2026;
✅️The External Trade (Amendment) Bill, 2026;
✅️The Lotteries and Gaming (Amendment) Bill, 2026; and
✅️The Traffic and Road Safety (Amendment) Bill, 2026.
The Bills are meant to raise revenue, foster compliance and assist @URAuganda in its work and revenue mobilization plays a critical role in financing Government priorities for socio-economic transformation.
I also said the proposed amendments are complemented by the improvements in tax compliance,adding that the compliance strategies are designed to expand the tax base by bringing on board persons currently outside the tax net.
TAX POLICY PROPOSALS:
INCOME TAX:
➡️An option for taxpayers to pay rental income tax monthly.
➡️Introduce a withholding tax of 10% on commissions paid to data and voice bundle distribution agents.
➡️Introduce an Alternative Minimum Tax of 0.5% for businesses which carry forward losses beyond 7 consecutive years.
➡️Introduce 6% final witholding tax on non business assets.
➡️Introduce a withholding tax of 6% on public entertainers.
VAT:
➡️Increase the VAT Threshold from UGX. 150 million to UGX 250 million.
➡️Clarification of the taxation of imported software.
STAMP DUTY:
➡️Increase the stamp duty on land transfers from 1.5% to 3%.
➡️Introduce Stamp duty on motor vehicle and Motorcycle registration both at first registration and on transfer as follows: Motor vehicle registration at UGX. 100,000 for regular vehicles and UGX. 200,000 for commercial motor vehicles and motorcycles at UGX. 50,000.
EXCISE DUTY:
➡️Increase excise duty on diesel and petrol by UGX. 200 per litre.
➡️Increase the specific excise duty rate on any other un-denatured spirits of alcoholic strength by volume of less than 80% from UGX 1700/litre to UGX 3500/litre.
➡️Increase excise duty at first registration on motorcycles from UGX. 200,000 to UGX. 500,000.
➡️Extend excise duty to apply on all single use plastics and increase the rate from 2.5% or USD 70 per ton whichever is higher to 25% or USD 1,500 per ton whichever is higher.
➡️Increase excise duty on cement from UGX. 500 to UGX. 1,000 per 50 kg.
➡️Increase excise duty rate for sugar from Shs. 100 per Kg to Shs. 300 per Kg.
➡️Introduce excise on cooking fat and fatty acids at UGX. 500 per liter/ Kg.
➡️Increase excise duty on cooking oil from UGX. 200 to UGX. 400 per litre.
TRAFFIC AND ROAD SAFETY ACT:
➡️Reduce the age of acceptable cars from 15 years to 13 years from the date of manufacturing. Introduce a graduated scale of environmental levy on imported used motor vehicles.
English
