economy 10 April 2026 Daily Monitor (Uganda)
Student Economist Critiques Uganda's Tax Reforms: Revenue vs. Fairness
A Ugandan economics student argues that the Ministry of Finance's new tax proposals to raise Shs4.8 trillion unfairly burden the poor through hikes on essentials like fuel and sugar, urging a shift to expanding the tax base via the informal sector instead. While some measures like healthcare exemptions offer benefits, the reforms risk increasing inequality without broader compliance efforts. Source: https://www.monitor.co.ug/uganda/oped/commentary/revenue-at-what-cost-a-student-s-view-on-uganda-s-new-tax-proposals-5418750
Uganda’s Ministry of Finance has introduced tax reforms targeting Shs4.8 trillion in revenue for FY 2026/27, featuring rate hikes, exemptions, and administrative updates. Economics student Patience Aloyo Kidaga questions their fairness, noting they disproportionately hit low-income groups.
Taxes on fuel, rising by Shs200 per litre for petrol and diesel, will drive up transport and commodity prices. Levies on sugar, cooking oil, and building materials further strain household budgets, making these measures regressive as poorer families spend more on basics.
Property stamp duty doubling to 3% may hinder real estate deals, while new registration fees burden vehicle and boda boda owners. Positives include waived import duties on medicines and vaccines to cut healthcare costs, plus eco-taxes on plastics and old vehicles.
Taxing digital services, gaming, and foreign income, alongside EFRIS digital tools and wider registration, aims to boost compliance and curb evasion. Kidaga advocates formalizing the informal sector and cutting exemptions over rate increases to ensure equitable revenue growth.
Source: Daily Monitor (Uganda)