Politics 23 April 2026 Parliament of Uganda
Uganda Parliament Rejects Tax on Diaspora Remittances and Personal Asset Sales
Ugandan lawmakers have approved the Income Tax (Amendment) Bill, 2026, turning down government plans to impose taxes on earnings remitted by citizens working abroad and profits from selling non-business assets like land and jewelry. The decision aims to shield low-income migrants and avoid punitive measures while broadening the tax base for the 2026/2027 budget. Source: https://www.parliament.go.ug/news/4412/parliament-rejects-taxing-kyeyo-earnings
Uganda’s Parliament passed the Income Tax (Amendment) Bill, 2026, during a session on April 23, 2026, led by Speaker Anita Among. Lawmakers rejected a proposal to tax ‘kyeyo’ remittances sent home by Ugandans working overseas, citing the harsh conditions and low earnings of many migrant workers, especially in the Middle East.
The House also dismissed plans to levy taxes on gains from selling non-business assets such as land, jewelry, or personal items. Finance Committee Chair Amos Kankunda argued these sales often fund personal needs like medical bills, making them unsuitable for taxation. MP Karim Masaba highlighted the overly broad scope, questioning taxes on simple items like a used TV.
State Minister Henry Musasizi initially defended the measure against disguised business deals but conceded enforcement difficulties, leading to its removal.
Other key approvals include a six-year tax holiday extension for Bujagali Hydropower until 2032 to keep electricity affordable, classifying software as royalties for digital taxation, raising the PAYE exemption to Shs335,000 monthly, and lowering hotel investment thresholds from $5M to $1.5M to spur tourism.
Parliament also enacted the Lotteries and Gaming (Amendment) Bill, 2026, to standardize taxes across gambling activities.
These changes seek to balance revenue needs for the 2026/2027 budget with economic growth and taxpayer relief, as per the Finance Committee’s recommendations.
Source: Parliament of Uganda