22/04/2026
๐ข Tax measures that raise revenue must also uphold fairness, equity, and trust in the tax system:
In the effort to generate more revenue, the Government has made amendments to the existing tax laws, including: a) the External Trade (Amendment) Bill 2026; b) the Stamp Duty (Amendment) Bill 2026; c) the Tax Procedure (Amendment) Bill 2026; d) the Income Tax (Amendment) Bill 2026; e) the Excise Duty (Amendment) Bill 2026; f) the Value Added Tax (Amendment) Bill 2026; g) the Traffic and Road Safety (Amendment) Bill 2026; and h) the Lotteries and Gaming (Amendment) Bill 2026.
Governmentโs ambition is to raise approximately Shs 4.8 trillion in additional revenue. While domestic resource mobilisation is important, the design of these measures raises critical concerns about how Uganda is balancing the 4Rs of taxation: Revenue, Redistribution, Representation, and Repricing.
๐น 1. Revenue โ Raising funds, but at what cost?
Many of the proposed measures especially increases in excise duties on fuel, cement, sugar, and first-time vehicle registration are expected to boost collections. However, they largely rely on a narrow base of already compliant taxpayers rather than broadening the tax net to untaxed and under-taxed sectors.
๐น 2. Redistribution โ Are we reducing or deepening inequality?
Heavy reliance on consumption and excise taxes risks making the tax system more regressive. Increases in fuel and essential commodities inevitably ripple into higher transport, food, and construction costs placing disproportionate pressure on low- and middle-income households.
๐น 3. Representation โ Is taxpayer voice reflected in tax design?
While tax reforms are presented annually, concerns persist that stakeholder consultation remains limited. The repeated focus on SMEs and formal sector actors while large parts of the informal economy remain outside the tax net, raises questions of fairness and inclusivity in fiscal decision-making.
๐น 4. Repricing โ Are taxes shaping behaviour or just burdening consumption?
Some sin taxes (on alcohol, to***co, gambling) are justified as behavioural tools. However, broader excise increases especially on fuel and construction inputs risk distorting production costs and household consumption patterns without clear social protection buffers.
โ ๏ธ Key concern: a narrow tax base is carrying a widening burden
As highlighted in the article, Uganda continues to underperform on its tax-to-GDP targets, yet the response has often been to intensify pressure on the same compliant taxpayers rather than structurally expanding the base and addressing informality and exemptions.
At Tax Justice Alliance Uganda, we reaffirm that taxation is not only about raising revenue, but about building a system that strengthens:
โ Fair redistribution of the tax burden
โ Meaningful citizen representation in fiscal policy
โ Responsible economic repricing that protects livelihoods
โ Sustainable and equitable revenue generation
A credible tax system must balance all four Rs, not elevate revenue at the expense of fairness.
