Finance Minister Backs President's Revisions to Tax Bills

Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, has publicly supported President Yoweri Museveni’s rationale for returning two key tax Bills to Parliament for reconsideration. The Income Tax (Amendment) Bill, 2026 and the Excise Duty (Amendment) Bill, 2026 are being reviewed to ensure a delicate balance between generating government revenue, fostering economic growth, and safeguarding the environment.

Appearing before the Committee on Finance, Planning and Economic Development, Musasizi explained that the amendments are crucial for maintaining tax fairness and preserving the original policy intentions of the government. The President had previously returned the Bills, passed by Parliament in April 2026, without his assent.

One primary concern raised by the President was the proposed exemption of a 15 percent withholding tax on winnings from land-based casinos in the Income Tax Bill. He argued this would create loopholes for tax avoidance. Minister Musasizi concurred, stating that applying the same tax rate to both land-based and online casinos would prevent tax advantages and help realize the projected Shs65 billion in revenue for the 2026/2027 financial year.

Regarding the Excise Duty Bill, the President recommended maintaining the 2.5 percent tax on single-use plastics, a reduction from the 25 percent initially passed. This was due to concerns that the higher rate could negatively impact production, especially given the limited availability of viable alternatives in Uganda. Musasizi defended this stance, suggesting that expanding the scope of the tax to include plastic granules and other disposable items like cups and bottles, while maintaining the lower rate, could still generate an additional Shs3 billion.

However, some Members of Parliament expressed skepticism regarding the government’s commitment to environmental protection, questioning the country’s approach to plastic waste compared to other nations. The finance committee is expected to report on the returned Bills next week.

Source: Parliament of Uganda