economy 23 March 2026 Daily Monitor (Uganda)
Uganda Govt Targets Shs4.8 Trillion in New Tax Measures for 2026/2027 Budget
The Ugandan government plans to raise an additional Shs4.8 trillion through fresh tax reforms and URA administrative steps for the 2026/2027 financial year. Key changes include higher PAYE for top earners, fuel and sugar excises, and new duties on motorcycles and property transfers. Source: https://www.monitor.co.ug/uganda/news/national/tax-proposals-to-hit-hard-as-govt-seeks-to-collect-shs4-8-trillion-5399858
The Ministry of Finance is set to propose measures aiming to collect Shs4.8 trillion extra in revenue for the upcoming financial year. Of this, Shs2.3 trillion will come from tax reforms, with the balance from URA efficiency improvements.
These proposals will soon go before Parliament for review by the Finance Committee after stakeholder consultations. Officials, including Permanent Secretary Dr. Ramathan Ggoobi, held back detailed comments, awaiting formal tabling.
Under income tax changes, earners above Shs10 million monthly face 40% PAYE, up from 30%, while low-income thresholds rise from Shs235,000 to Shs335,000 to ease living costs. Rental payments shift to monthly options, and a 15% withholding tax returns on gaming payouts.
A 5% Capital Gains Tax targets sales of jewelry, private shares, excess land over Shs100 million, and rental properties, exempting owner-occupied homes and court-ordered disposals.
Fuel taxes climb by Shs200 per litre—petrol to Shs1,750 and diesel to Shs1,430—projected to yield Shs450 billion without major pump price spikes. Spirits excise doubles to Shs3,500 per litre, sugar to Shs300 per kg, and cooking oil to Shs400 per unit.
Motorcycle registration jumps to Shs500,000 from Shs200,000, with new duties on tiles, cement, paints, and a stamp duty hike on land to 3%. VAT threshold rises to Shs250 million to cut admin burdens on small firms.
This follows a Shs78.2 trillion national budget and aims to boost local revenue toward Shs40 trillion.
Source: Daily Monitor (Uganda)