Health 19 August 2026 Daily Monitor (Uganda)
Museveni's plan to exempt medics from PAYE tax sparks debate
President Museveni's directive to explore exempting medical workers from Pay As You Earn (PAYE) taxes has ignited a debate, with health professionals welcoming it and policy analysts raising concerns about tax base equity. Source: https://www.monitor.co.ug/uganda/news/national/museveni-tax-waiver-plan-for-medics-sparks-debate-5563050
A recent directive from President Yoweri Museveni suggesting the exemption of medical workers from Pay As You Earn (PAYE) taxation has ignited a significant discussion among both healthcare professionals and policy experts in Uganda.
While the medical fraternity has largely welcomed the proposal, viewing it as a long-overdue measure to incentivize their work, others have voiced apprehension. Critics argue that creating selective tax waivers could undermine the national tax base and introduce unfairness across various public service professions.
Dr. Chris Baryomunsi, the Minister of Health, announced the Cabinet’s directive, emphasizing the government’s concern over the absorption of newly qualified medical graduates and the compensation provided to them. The President has reportedly suggested treating medical workers similarly to soldiers and the armed forces, who benefit from certain tax exemptions.
Dr. Mark Muyanga, spokesperson for the Uganda Medical Association, expressed support for the initiative, stating it has been a long-standing request. He highlighted that Ugandan doctors often receive significantly less pay compared to their counterparts in other East African countries. Muyanga also suggested exploring other incentives, such as duty-free shops for medical professionals, to improve their quality of life.
However, policy analysts like Mr. Julius Mukunda, Executive Director of the Civil Society Budget Advocacy Group (CSBAG), warn of potential negative economic consequences. Mukunda expressed concern that such exemptions could hinder Uganda’s efforts to increase its tax-to-GDP ratio and create wage disparities within the public sector. He noted a trend of increasing tax exemptions for various professional groups, from judges and MPs to prosecutors and now scientists, while ordinary citizens continue to face tax burdens.
Statistics from the Ministry of Public Service indicate a substantial rise in the public service wage bill over the last four years, with the health and education sectors consuming the largest portions due to salary enhancements. The Ministry also noted that the health service sector is currently understaffed, with many approved positions unfilled.
The debate underscores the complex balancing act the government faces in incentivizing critical professions while maintaining a robust and equitable tax system. The final decision is expected following a comprehensive report to be submitted to the Cabinet within two months.