economy 31 March 2026 Daily Monitor (Uganda)
Uganda's Proposed Tax Reforms: How They'll Hit Your Wallet in FY2026/27
Uganda Revenue Authority's new tax proposals for FY2026/27 aim to widen the tax net, raising rates on fuel, betting, alcohol, and construction materials while offering some relief like higher PAYE thresholds. These changes, pending parliamentary approval, will increase costs for everyday items and activities across the board. Source: https://www.monitor.co.ug/uganda/special-reports/how-the-proposed-tax-reforms-will-impact-you-5409662
Uganda Revenue Authority (URA) has unveiled sweeping tax reforms for the 2026/27 financial year, designed to bring more transparency and ensure everyone contributes to the economy. While high earners face a 40% Pay As You Earn (PAYE) rate, lower-income workers benefit from an increased tax-free threshold from Shs235,000 to Shs335,000 monthly, adding Shs10,000–13,000 to their take-home pay.
Betting enthusiasts, dubbed ‘kapapula’ players, will see a 15% withholding tax on full payouts—not just winnings—plus a 5% excise duty on deposits, aimed at curbing excessive gambling. Fuel prices are set to rise by Shs200 per litre for both petrol and diesel, potentially pushing more people onto boda bodas.
Cash withdrawals from ATMs or mobile money will incur a standardized 0.25% excise duty, down from 0.5% on mobile money, promoting cashless transactions. High-end spirits face a steep excise hike from Shs1,700 to Shs5,000 per litre, while cooking oil doubles to Shs400 per litre and sugar to Shs300 per kg.
Construction costs climb with new duties: Shs1,000 per 50kg on cement, grout, and adhesives; Shs1,000 per square metre on tiles; and duties on paints. Used clothes surcharges jump to 30%, and performers’ earnings will have 6% withheld by promoters.
Vehicle and land deals get pricier too—stamp duty on new car registrations at Shs100,000, transfers at 3%, plus 5% Capital Gains Tax on land sales. Older vehicles (over 13 years) face higher levies. Foreign income earners can waive penalties if they remit taxes by June 2027.
Experts like PwC’s Sophie Kayemba note these changes will raise living and business costs for all. With digital tools like the Centralised Payment Gateway, evasion is tougher than ever.
Source: Daily Monitor (Uganda)