Uganda’s government has unveiled proposed tax measures for the FY 2026/27, aiming to raise Shs 4.8 trillion. The measures include increasing PAYE to 40% for earners over Shs 10 million monthly and raising fuel duty by Shs 200/litre. The government also plans to increase excise duty on sugar from Shs 100 to Shs 300/kg and impose a new 5% tax on capital gains from non-business assets.
Additionally, taxes on construction materials like cement, tiles, and paints are set to rise, while motorcycles will attract a higher excise duty on first registration, from Shs 200,000 to Shs 500,000. A 0.5% withholding tax is proposed for agricultural supplies payments exceeding Shs 1 million.
To ease compliance for 0.5 million small businesses, the VAT registration threshold will be raised from Shs 150 million to Shs 250 million. The government also intends to replace Tax Identification Numbers (TINs) with National Identification Numbers (NINs) for individuals to improve compliance.
The Uganda Revenue Authority (URA) is targeting a revenue collection of over Shs 40 trillion for FY 2026/27. The proposed measures aim to increase revenue and reduce the country’s reliance on foreign debt.
