Business 29 April 2026 Daily Monitor (Uganda)
Uganda Private Sector Pushes to Scrap 30% Tax Dispute Deposit Rule
A coalition of major Ugandan business groups has urged the government to reform a tax law requiring companies to deposit 30% of disputed taxes before appeals can proceed, calling it a major obstacle to justice. They seek discretionary waivers to ease cash flow burdens and boost economic growth. Source: https://www.monitor.co.ug/uganda/news/national/private-sector-wants-30-tax-dispute-deposit-rule-removed-5440806
A group of prominent Ugandan business organizations has submitted a petition calling for changes to a controversial tax regulation. The rule under Section 15(1) of the Tax Appeals Tribunal Act demands that firms pay 30% of any disputed tax amount upfront to have their Uganda Revenue Authority (URA) assessments reviewed.
Key supporters include the Private Sector Foundation Uganda (PSFU), Uganda Manufacturers Association (UMA), Kampala City Traders Association (KACITA), Uganda Insurers Association (UIA), and Uganda Bankers Association (UBA). The petition, dated April 24, 2026, and received by the Ministry of Finance on April 27, highlights how this requirement creates severe cash flow issues for businesses.
Leaders argue the deposit acts as an ‘insurmountable barrier to justice,’ excluding smaller firms unable to afford it. As tax disputes rise in scale, the sums demanded have become excessive, leading to case dismissals over payments rather than merits. This setup hampers investment, jobs, and the economy, they claim.
The coalition proposes giving the Tax Appeals Tribunal power to waive or lower deposits, especially for valid procedural challenges. They reference the tribunal’s 2025 report advocating flexibility, past rulings, and more lenient approaches in countries like Kenya, Tanzania, the UK, and US.
Addressed to the Finance Minister, Attorney General, and Parliament, the petition stresses that reforms would restore trust in the tax system amid efforts to drive private sector growth. Legislative action is needed for any updates.
Source: Daily Monitor (Uganda)