Politics 21 April 2026 Parliament of Uganda
Parliament Approves 30% Levy on Mivumba, Raises VAT Threshold to Shs300m
Uganda's Parliament has passed several tax amendment bills, imposing a 30% environmental levy on imported second-hand clothes (mivumba) while doubling the VAT registration threshold to Shs300 million to support small businesses. Additional measures include a tax amnesty for old arrears and hikes on excise duties for cement, spirits, and other goods to boost government revenue. Source: https://www.parliament.go.ug/news/4409/mivumba-hit-30-tax-parliament-raises-vat-threshold-shs300m
Uganda’s Parliament on April 21, 2026, approved multiple tax amendment bills to generate revenue for the upcoming financial year. The session, presided over by Speaker Anita Among, followed reports from the House Committee on Finance chaired by Amos Kankunda.
The Value Added Tax (Amendment) Bill, 2026, raised the VAT registration threshold from Shs150 million to Shs300 million. This change aims to cut compliance burdens on small and medium enterprises amid inflation since 2015. Kankunda noted that businesses between Shs150-250 million contribute just 3% of VAT revenue. A minority push for Shs500 million by MP Karim Masaba was rejected, with State Minister Henry Musasizi citing minimal revenue loss at the approved level.
Under the External Trade (Amendment) Bill, 2026, a 30% environmental levy now applies to all imported second-hand clothes, known as mivumba. Musasizi said this supports local textile growth and aligns with East African Community goals and the ‘Buy Uganda, Build Uganda’ policy. MP Brenda Nabukenya opposed it, calling the hike punitive for low-income buyers relying on affordable clothing.
The Tax Procedures Code (Amendment) Bill, 2026, grants a full amnesty on tax arrears, penalties, and interest up to June 30, 2016. This clears URA records, resolves disputes, and shifts focus to current collections.
Excise Duty (Amendment) Bill, 2026, updates include raising cement tax from Shs500 to Shs750 per 50kg bag, Shs400 per litre on cooking oil, US$1,500 per tonne on plastics, doubled duty on cane sugar to Shs200, and motorcycle first registration from Shs200,000 to Shs500,000. Imported spirits face higher duties to aid local producers, while imported paints get 10% excise versus 3% for local ones.
The Stamp Duty (Amendment) Bill, 2026, nixed hikes on land and motorcycle transfers but added measures for motor vehicles.
Source: Parliament of Uganda