Politics 21 April 2026 Daily Monitor (Uganda)
Uganda's Tax Bills Burden the Poor While the Rich Escape Scrutiny
As Uganda's Parliament fast-tracks tax bills for the 2026/2027 fiscal year, critics argue they disproportionately target low-income earners through levies on fuel, cement, boda bodas, mobile money, and entry-level smartphones. The editorial calls for the wealthy to contribute fairly amid declining donor support and rising debt. Source: https://www.monitor.co.ug/uganda/oped/editorial/ensure-the-rich-too-pull-their-weight-5424302
Uganda’s House Finance Committee is advancing tax legislation for the upcoming 2026/2027 fiscal year, with indications that the budget will not favor the poor. Historically, tax reliefs have benefited the affluent, even when fiscal room existed for public welfare. Now, facing reduced aid from partners and mounting debt, the government is imposing taxes on essentials that hit lower-income groups hardest.
A Civil Society Budget Advocacy Group (CSBAG) study reveals inconsistencies in tax policies clashing with the National Development Plan IV goals, such as 45% internet penetration and 71% mobile money usage by 2029. A 0.5% excise duty on mobile money withdrawals results in fees five times higher than ATM charges, severely affecting households where usage has risen from 56% in 2018 to 64% now. Entry-level smartphones face 18% VAT and 10% import duties, further straining the poor.
Parliament rushed through the second and third readings of these bills with strong conviction, despite their heavy impact on vulnerable populations. Taxes on fuel, cement, and boda bodas are set to deliver the expected economic squeeze.
The government claims its options are limited, but questions persist about the rich contributing their share. Widening inequality risks eroding trust and stability, fueled by perceptions of property speculation and tax avoidance benefiting elites. If wealth stems from exploiting the poor rather than innovation, policy changes are urgently needed. The opposition’s absence during key votes underscores the need for stronger pushback.
Source: Daily Monitor (Uganda)