economy 3 April 2026 Parliament of Uganda
Uganda Government Presents Tax Bills for FY2026/27 with New Levies on Secondhand Clothes and More
The Ugandan government has introduced several tax amendment bills for the upcoming financial year, including a 30% environmental levy on imported secondhand clothing to curb waste and boost local production. Other measures target excise duties on spirits, cement, paints, cooking fat, and new withholding taxes on digital services, gaming winnings, and high incomes. Source: https://www.parliament.go.ug/index.php/news/4384/govt-tables-tax-bills-fy202627
The Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi, presented key tax amendment bills to Parliament on April 1, 2026, during a plenary session led by Speaker Anita Annet Among.
A standout proposal in the External Trade (Amendment) Bill, 2026, is a 30% environmental levy on the cost, insurance, and freight value of imported worn clothing and similar items. This aims to reduce environmental harm from textile waste and encourage local manufacturing, as outlined by Finance Minister Hon. Matia Kasaija.
The bill also waives infrastructure levies and import declaration fees for essential imports like vaccines, medicines, medical supplies, and pesticides.
Under the Excise Duty (Amendment) Bill, 2026, new rates include 80% or Shs3,500 per litre (whichever higher) on imported spirits below 80% alcohol strength. Cement and related products face Shs1,000 per 50kg, while locally made paints incur 3% or Shs50 per litre/kg, versus 10% or Shs2,000 for imports. Cooking fat gets Shs500 per litre/kg.
The Income Tax (Amendment) Bill, 2026, adds withholding taxes: 5% on interest to non-resident firms, 6% on non-business asset purchases and entertainer payments, 10% on telecom commissions (including mobile money), 15% on net gaming winnings, and 10% on incomes over Shs120 million annually.
These changes seek to enhance revenue and compliance ahead of FY2026/27.
Source: Parliament of Uganda