Finance Minister Backs President's Revisions to Tax Bills

Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, has aligned with President Yoweri Museveni’s stance on the reconsideration of the Income Tax (Amendment) Bill, 2026, and the Excise Duty (Amendment) Bill, 2026. Musasizi presented the rationale behind the President’s proposed amendments to the Committee on Finance, Planning and Economic Development, highlighting their aim to achieve fiscal balance while fostering economic development and safeguarding the environment.

The President had previously returned the two bills, passed by Parliament in April 2026, citing concerns over specific clauses. One key objection was the proposed exemption of a 15 percent withholding tax on winnings from land-based casinos. President Museveni argued that this would create avenues for tax avoidance and revenue loss, advocating for identical tax treatment as online casinos to ensure fairness.

Minister Musasizi supported this, explaining that differential tax rates could incentivize structuring gaming activities to exploit tax loopholes. He stated that the proposed revision would help realize the initially projected Shs65 billion in revenue for the FY 2026/2027.

Regarding the Excise Duty (Amendment) Bill, the President proposed maintaining the tax on single-use plastics at 2.5 percent, contrary to the 25 percent passed by Parliament. This higher rate was intended to curb the use of environmentally harmful plastics. The President expressed concern that the 25 percent tax could negatively impact production due to the current lack of readily available alternatives in Uganda.

Musasizi defended this position, explaining that expanding the scope of the tax to include plastic granules and other single-use items like cups, plates, and bottles, would still generate an additional Shs3 billion in revenue. He assured that the government’s environmental protection policy would be pursued through a broadened tax base rather than a prohibitive rate.

However, some Members of Parliament voiced concerns about the government’s commitment to environmental conservation, questioning the research and the apparent promotion of plastic use despite its environmental impact. The finance committee is expected to report on the returned bills next week.

Source: Parliament of Uganda