Politics 2 April 2026 Daily Monitor (Uganda)
Ugandans to Fund 53% of Shs84.2 Trillion 2026/27 Budget Through Higher Taxes
Ugandans will cover 52.8% of the FY2026/27 budget totaling Shs84.2 trillion, with local revenue targets rising to Shs44.5 trillion, including Shs7.3 trillion more for URA. New tax measures, such as higher PAYE rates and fuel duties, aim to raise Shs1.7 trillion amid priorities in agro-industrialization and tourism. Source: https://www.monitor.co.ug/uganda/news/national/ugandans-to-shoulder-52-of-shs84-2-trillion-budget-5411502
Junior Minister for Finance Henry Musasizi presented the draft budget estimates for FY2026/27 to Parliament on April 1, 2026, totaling Shs84.2 trillion. This budget aligns with the fourth National Development Plan and the NRM manifesto, focusing on agro-industrialization, tourism, mineral-based industries, and science, technology, and innovation.
Local revenues will finance 52.8% of the budget at Shs44.5 trillion, leaving Shs47 trillion to be borrowed. The Uganda Revenue Authority faces a target increase to Shs44.5 trillion, up Shs7.3 trillion from the current Shs37.2 trillion, through tax reforms worth Shs1.7 trillion and Shs2.5 trillion from fines and administrative steps.
Key investments include agricultural research, irrigation, tourism branding, mining enhancements like the East African Crude Oil Pipeline, and STI commercialization such as Kira Motors and a hi-tech city. Enablers like security, infrastructure, and human capital development are also prioritized.
Tax proposals amend several acts, including Income Tax, Excise Duty, and VAT. Highlights feature a 40% PAYE rate for salaries over Shs10 million (from 30%), raising the low-income threshold to Shs335,000 monthly, petrol tax to Shs1,750 per litre (plus Shs200), diesel to Shs1,430, spirits duty to Shs3,500 per litre, sugar to Shs300 per kg, and motorcycles to Shs500,000 at registration.
URA’s taxpayer base grew to 5.25 million, but covers just 20% of eligibles. Past collections fluctuated, with tax-to-GDP at 13%, prompting calls from Finance Minister Matia Kasaija for better compliance to reduce borrowing.
Source: Daily Monitor