Politics 21 April 2026 Daily Monitor (Uganda)
Parliament Approves New Taxes Amid Protests: Higher Costs for Clothes, Fuel, and More
Ugandan MPs have passed several tax amendment bills, raising levies on secondhand clothes to 30 percent, motorcycles, cooking oil, cement, fuel, and spirits to fund an Shs84.2 trillion budget for 2026/2027. While some proposals like VAT on software and higher stamp duty were rejected, critics warn of increased living costs and job losses for youth in imports. Source: https://www.monitor.co.ug/uganda/news/national/winners-losers-as-mps-pass-new-taxes-5431998
Uganda’s Parliament has approved key tax amendments, boosting the national budget to Shs84.2 trillion for the 2026/2027 financial year, up from Shs72.1 trillion. Citizens will now cover up to 52 percent of this budget, or Shs44.5 trillion, through new and increased taxes.
Starting July 1, importers of secondhand clothes face a 30 percent environmental levy, doubled from 15 percent, to bolster the local textile sector and curb mitumba imports. State Minister Henry Musasizi defended the move, but traders fear youth job losses in the sector, where 52 percent of imported clothes are secondhand per URA data.
Opposition MPs like Brenda Nabukenya and Ibrahim Ssemujju Nganda protested, arguing it burdens the poor who rely on affordable used clothing. Speaker Anita Among dismissed some concerns with pointed remarks on party attire.
The Excise Duty Amendment Bill passed with hikes including motorcycles from Shs200,000 to Shs500,000, cooking oil from Shs200 to Shs400 per litre, cement bags from Shs500 to Shs1,000 per 50kg, and fuel by Shs200 per litre (petrol to Shs1,750, diesel to Shs1,430). Spirits duties also rose significantly.
Government expects Shs4.8 trillion in extra revenue, with Shs2.3 trillion from reforms. Critics like Ssemujju decry the lack of a clear taxation policy, predicting higher business costs and uncompetitive goods regionally.
Wins for taxpayers included scrapping VAT on imported software, doubling the VAT threshold to Shs300 million, rejecting a ban on 13-year-old vehicle imports, maintaining motorcycle registration at Shs50,000, and reconsidering stamp duty hikes on land from 1.5 percent to 3 percent.
These changes align with the 4th National Development Plan for tenfold growth.
Source: Daily Monitor (Uganda)