On 13 June, 2024, Uganda’s Minister of Finance, Planning and Economic Development, Matia Kasaija, presented the Budget Speech for the Financial Year 2024/2025 in the Parliament. The speech, among other things, outlined certain tax measures for 2024/2025 that had already been proposed and approved by Parliament.

According to the Uganda Parliament website, the 2024/2025 Budget bills were passed in their third reading and are awaiting the president’s assent for enactment.

These include:

Tax Measures for Financial Year 2024/25

Excise Duty

  • Imposition of excise duty on powdered beer at USH 1,000 per kilogram
  • Imposition of excise duty at a rate of 0.5% of the value of withdrawals of money from other platforms other than mobile money. This does not apply to withdrawals from agent banking or banking halls.
  • Increase excise duty on petrol by USH 100 per litre.
  • Increase excise duty on diesel by USH 100 per litre.
  • Increase excise duty on imported wines from 80% or USH 8,000 per litre to 100% or USH 10,000, whichever is higher.
  • Imposition of excise duty on adhesives, grout, white cement and lime. The objective is to align the tax treatment of these products with that of cement.

Income Tax

  • Investors are exempted from tax capital gains arising from the sale of holdings in private equity or venture capital funds regulated by the Capital Markets Authority.
  • Tax holidays are granted on the income of a person who manufactures and fabricates electric motor vehicles, electric motorcycles, electric batteries and electric vehicle charging equipment, as well as the income of a person who develops, establishes or operates a medical facility or hospital facility;
  • The waiver of penalties and interest on arrears outstanding by June 2023 has been extended. This waiver will apply when the taxpayer pays between July and December 2024; and
  • A 10% withholding tax has been introduced on commission paid to the banking agents and fintech agents.

Value Added Tax (VAT)

Under VAT, the supply of electric motorcycles, vehicles manufactured or fabricated in Uganda, and their respective charging stations and batteries for electric motorbikes, charging stations, and related services are exempt from tax.

Tax Administration Measures

  • Expanding URA presence and coverage by opening up 5 liaison offices;
  • Strengthening the enforcement and use of Electronic Fiscal Receipting and Invoicing System (EFRIS) and Digital Tax Stamps (DTS) and the rental tax solution;
  • Strengthening the exchange of information with other tax authorities to combat illicit financial flows and under-declarations; and
  • Strengthening enforcement interventions.