Politics 1 April 2026 Parliament of Uganda
Uganda Government Introduces Tax Bills for FY2026/27 with 30% Levy on Second-Hand Clothes
The Ugandan government has presented new tax legislation for the 2026/27 financial year, featuring a 30% environmental levy on imported second-hand clothing to curb waste and boost local manufacturing. Additional changes target excise duties on spirits, cement, paints, cooking fat, and introduce withholding taxes on digital services, gaming winnings, and high incomes. Source: https://www.parliament.go.ug/news/4384/govt-tables-tax-bills-fy202627
The Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi, presented several tax amendment bills to Parliament on April 1, 2026, during a plenary session led by Speaker Anita Annet Among.
A key proposal in the External Trade (Amendment) Bill, 2026, authored by Finance Minister Hon. Matia Kasaija, imposes a 30% environmental levy on the cost, insurance, and freight value of imported worn clothing and articles. This aims to reduce environmental damage from textile waste and encourage local production.
Exemptions are proposed for essential imports like vaccines, medicines, medical supplies, and pesticides from infrastructure levies and import declaration fees.
The Excise Duty (Amendment) Bill, 2026, revises taxes on various goods. Imported un-denatured spirits under 80% alcohol face 80% duty or Shs3,500 per litre, whichever is higher. Cement, adhesives, grout, white cement, and lime attract Shs1,000 per 50kg. Locally made paints, varnishes, and lacquers get 3% or Shs50 per litre/kg, while imports face 10% or Shs2,000. Cooking fat incurs Shs500 per litre/kg.
Under the Income Tax (Amendment) Bill, 2026, new withholding taxes include 5% on interest from resident companies to non-resident financial institutions, 6% on non-business asset purchases, 10% on telecom commissions like mobile money, 15% on net gaming winnings, 6% on public entertainers’ payments, and 10% on incomes over Shs120 million annually.
These measures seek to adjust revenue streams for the upcoming financial year. Source: Parliament of Uganda