By The government has revealed its 2025/26 tax measures, projected to generate over Shs2.4 trillion to finance the national budget. Minister of State for Finance, Henry Musasizi, disclosed this while defending the proposals contained in the Seven Tax Bills and the Uganda Revenue Authority Administrative Measures before Parliament’s Finance Committee.
Among the proposed measures is the introduction of an import declaration fee on goods imported for home use, aimed at generating Shs79 billion to fund the construction of the Standard Gauge Railways. Musasizi explained that this measure seeks to raise revenue for infrastructure investment, promote import substitution, and support local industries.
The Ministry of Finance has also proposed increasing taxes on cigarettes and beers manufactured from local raw materials to generate Shs19.40 billion. He says this move is intended to reduce the health risks associated with smoking in Uganda.
Musasizi noted, “Increasing the duty will not only align with inflationary trends but also serve as a public health objective by discouraging tobacco consumption, which imposes significant health costs on the economy.”
To boost tax collection, the Uganda Revenue Authority plans to hire an additional 1,260 staff.
“We are also stepping up efforts to eradicate corruption in revenue collection. Furthermore, we are recruiting 1,260 staff to boost our numbers and reach more taxpayers, especially high-net-worth individuals in businesses like construction and transport and professionals.”Musasizi stated
The proposed tax measures include Income Tax Amendment Bill No.2 2025, Excise Date Amendment Bill No.2, 2025, The Value Added Tax Amendment Bill 2025, The Tax Procedures Court Amendment Bill 2025, The Stamp Duty Amendment Bill 2025, Hides and Skins Export Duty Amendment Bill 2025, The External Trade Amendment Bill 2025
Musasizi emphasized that the government aims to generate Shs538.6 billion in 2025-2026 from the tax policy proposals contained in the bills, in addition to Shs1.885 trillion from URA administrative measures, totaling Shs2.420 trillion.
