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Uganda
Any other un- denatured spirits 80% or Ushs. To discourage the 3,500 per litre, importation of relatively (ii) that are imported, of alcoholic whichever is higher cheap spirits that strength by volume of less than 80% compete with locally produced alternatives thus support domestic manufacturers and enhance revenue mobilization.
To promote the utilization of locally sourced raw materials.
Cement, adhesives, grout, white Ushs. 750 per 50 To enhance revenue cement or lime kg mobilization
Motor spirit (gasoline) Ushs. 1750 per litre To enhance revenue (b) Gas oil (automotive, light, amber Ushs. 1430 per litre mobilization for high speed engines)
Ushs. 200 per kg To enhance revenue pure sucrose in solid form mobilization
Plastic granules, plastic products, sacks and bags of polymers of ethylene and other plastics except- To balance the objective of (i) vacuum packaging bags for food, environmental juices, tea and coffee; protection with (ii) sacks, and bags for direct use in 25% or USD investment. the manufacture of sanitary pads; 1,500 per tonne, (iii) multiple use plastics and plastic whichever is higher granules used in the manufacture of multiple use plastics; and (iv) plastic products used for packaging pharmaceutical products
Disposable plastic cups, lids, plates, cutlery, bags, sachets, bottles, straws and stirrers, cling films and wraps, jars and lids.
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To raise revenue Additional excisable goods to the schedule 2 of the Excise duty Act
locally manufactured or produced 3% or Ushs. 50 paints, varnishes and lacquers per litre or per kg, To widen the tax base whichever is higher and promote the (b) imported paints, varnishes and 10% or Ushs. 2000 utilization of locally lacquers per litre or per kg, sourced raw materials. whichever is higher
or kg
VAT (AMENDMENT) ACT, 2026 AMENDMENT JUSTIFICATION Non-Application of Withholding VAT To encourage use of EFRIS and improves where e-invoice or e-receipt is issued. business cash flow
A person designated to withhold VAT shall not be required to withhold and remit to URA six percent of the taxable value where the designated person pays for taxable supplies and is issued with an e-invoice or e-receipt.
Revision of the Annual Registration To reduce compliance costs for SME's and Threshold for VAT improve their cash flow.
The annual registration threshold has been increased from One Hundred Fifty Million shillings to Three Hundred Million shillings.
Credit for Input tax on Investment in Hotels and Tourism Facilities To encourage investment in the tourism- A credit is allowed to a taxable person who hospitality sector and stimulate economic develops a hotel or tourism facility and growth. invests at least ten million United States Dollars for a foreigner and five million United States Dollars for a citizen, provided that the supply of services or goods ( capital assets) occurred not more than two years, prior to the date of commissioning of the hotel or tourism facility.
An input tax credit arises on the date of commissioning the hotel and tourism facility.
Expansion of power of the minister to To encourage investment in the mining prescribe terms and conditions of payment sector of tax
The Minister may by regulations prescribe the terms and conditions of payment of tax on inputs for the mining sector.
Revision of the Threshold for a taxable person to claim interest on Refund Claims To cater for inflation and discourage inaccurate VAT refund claims. Where the Commissioner General after conducting an investigation of any amount shown as an excess in terms of refund of overpaid tax that the excess amount of input tax credit is greater than true amount of input tax credit is greater than the true amount due in excess of not less than five perecent of the total amount of the tax refund claimed no interest shall be payable.
Previously, the threshold was not less than fifty thousand.
Reduction of the Qualifying Threshold for To incentivize use of EFRIS by taxpayers in the 5% Tax Refund on use of Electronic businesses. Receipts and Invoices
A non-taxable person who purchases goods or services from a taxable person and is issued with an electronic receipt or invoice or several electronic receipts or invoices worth two million within a period of thirty consecutive days shall be entitled to a refund of five percent of the tax.
Amendment of Schedule 2 to the VAT Act: To expand the relief of claiming a refund of • To include, Arab Bank for Economic tax paid to these Public Institutions. Development in Africa (BADEA) in the list of Public International Organizations. • To substitute the words "Medical Research Council" with the words "Medical Research Council or Uganda Virus Research Institute and London School of Hygiene and Tropical Medicine (MRC/UVRI and LSHTM) Uganda Research Unit".
Amendment of Schedule 3 to the VAT Act To encourage investment in nuclear to exempt the following supplies from VAT: energy
• Supply of any goods and services to the contractors and subcontractors of nuclear energy.
TAX PROCEDURES CODE (AMENDMENT) ACT, 2026 AMENDMENT JUSTIFICATION Revision of the Penal tax relating to tax stamps To ease compliance
A person who fails to affix a tax stamp on prescribed goods is liable to a penal tax equivalent to double the tax due on the goods or one hundred currency points whichever is higher.
Waiver of tax outstanding as at 30th June, 2016 To reduce tax arrears and enhance tax Any tax including penal tax and interest compliance owed by a taxpayer as at 30th June, 2016 and is outstanding as at the commencement of this Act, is waived.
Waiver of interest and penalty on payment of principal tax To ease the tax burden and enhance tax Any interest and penalty outstanding as at compliance 30th June, 2025, shall be waived where the taxpayer pays the principal tax by 30th June, 2027.
Revision of penal tax relating to EFRIS
92 (2) who does not use an electronic fiscal device is liable to pay a penal tax equivalent to double the tax due on the goods or services, or ten currency points, whichever is higher.
who does not issue an e-invoice or e-receipt for goods or services, or who tampers with an electronic fiscal device, is liable to pay a penal tax equivalent to double the tax due on the goods or services, or ten currency points, whichever is higher.
STAMP DUTY (AMENDMENT) ACT, 2026 AMENDMENT JUSTIFICATION Monthly Stamp Duty Returns for persons To ensure proper reporting and carrying on the business of Financial Services accountability of stamp duty. A person carrying on the business of financial services shall file monthly returns with the Commissioner General, of all sums received in respect of stamp duty paid on the instruments.
Penal Tax relating to non-filing of the Monthly stamp duty return Simple interest of 2% percent of the duty To deter non-compliance payable for every month during which the failure continues.
Requirement to maintain records for at least To enhance tax compliance 5 years A person is required to maintain any registers, books, records, papers, documents or proceeding shall retain the document or record for a period of at least five years from the date the document was generated.
Amendment of Schedule 2 to the Stamp duty To widen the tax base Act to include: Registration or transfer of- 30,000/= a) motorcycle, tricycle or quadricycle b) any other motor vehicle 200,000/=
THE LOTTERIES AND GAMING (AMENDMENT) ACT, 2026 AMENDMENT JUSTIFICATION Amendment of Schedule 4 to the Lotteries and Gaming Act: To enhance revenue collection. Revision of the gaming tax rate from 20% to 30% for a betting or gaming activity operator.
The new rate is thirty percent of the total amount of money staked less the payouts for the period of filing returns for a betting or gaming activity.
Definition of "payouts" To mean the total gross amount of money, or To provide Clarity the fair market value of non-monetary prize paid by a gaming or betting operator to a player as a result of a winning bet or successful gaming outcome, including the amount staked, wagered, or contributed by the player to participate in the game or bet.
CUSTOMS AMENDMENTS FOR FY 2026/27
A. NEW REMISSIONS ON RAW MATERIALS AND INDUSTRIAL INPUTS FOR FY 2026/27 No. HSC Item Description Illustration Descision
Granted Uganda a remission of duty on inputs for the A smart electricity meter is an manufacture and assembly advanced digital device that of smart electricity meters to measures, records, and analyzes apply a duty rate 0% for one electrical energy consumption in year near real-time. Unlike traditional mechanical meters that require physical, manual inspections, smart meters utilize secure wireless networks to enable automatic, two- way communication between the consumer and the utility provider.
No. HSC Item Description Illustration Descision
Granted Uganda a remis rear lamps, side mirrors and dash sion of duty to 0% on inputs boards. for the manufacture and assembly of motorcycle head The inputs are constructed in a lights, indicators, rear lamps, manner that they are able to secure side mirrors and dash boards functional cores such as light sourc- for one year. es, glass, or digital displays-inside durable, weather-resistant plastic or metal housings.
No. HSC Item Description Illustration Descision
of duty to 0% on inputs for A mobile phone (or cell phone) is a the assembly/manufacture of portable electronic device used for mobile phones. wireless communication. It connects to a cellular network via radio Please take note that this was waves, allowing you to make calls, initially country specific, but send text messages, and access the now it's a regional remission. internet while on the move.
• Wire of iron or non-alloy steel- Granted Uganda a remission 5607.41.00 Not plated or coated, whether of duty on inputs for the 3926.90.90 or not polished manufacture of synthetic • Binder or baler twine brooms from 25%, 10% to 0% 5404.19.00 • Articles of plastics for one year 5509.11.00 • Other Synthetic monofilament • Single yarn 4016.10.00 • Articles of rubber
a remission of duty on raw materials and A printed mattress cover is a inputs for the manufacture of removable, patterned fabric foam and spring mattresses encasing designed to protect your from 25% to 10% for one year bed from spills, stains, and dust mites while adding decorative style to your bedroom. They are available in various styles, including fully enclosed zip-on covers or elastic- fitted sheets
No. HSC Item Description Illustration Descision
duty to 0% on inputs and raw For Leather and footwear manufac- materials for manufacture of turers leather and footwear for one year Polyurethanes, are plastic polymers created by reacting polyisocyanates with polyhydroxy compounds.
The above-mentioned versatile materials are presented in their primary forms (e.g., pellets, resins, liquids, or foams before final manufacturing into goods)
duty on specified raw materials An unassembled lock set (often and inputs for assembly of lock called a knockdown lock or sets from 25%, 10% to 0% for component lock kit) is a collection one year of individual lock parts delivered in pieces rather than as a pre-built unit
No. HSC Item Description Illustration Descision
a remission of duty on specified raw materials An un assembled weighing scale and inputs for assembly of typically consists of loose structural weighing scales from 10% to 0% plates, unmounted load cells, and for one year bare main-board PCB s shipped as a kit for local assembly.
Granted Uganda a remission of manufacture of galvanized iron and duty on galvanized slit coils of a steel pipes thickness of 1.8 mm to 4 mm for the manufacture of galvanized A galvanized slit coil is a continuous, iron and steel pipes from 25% narrow strip of steel that has been or $200/MT whichever is higher coated with a protective layer of to 0% for one year zinc and cut down from a wider "master" coil.
No. HSC Item Description Illustration Descision 10 39.07 Polyacetals, other polyether and Granted Uganda a remission of epoxide resins, in primary forms; duty to apply a duty rate of 0% polycarbonates, alkyd resins, poly- in the food and beverage sector, allyl esters and other polyesters, in chemical and allied industries primary forms. and plastic and foam sectors for one year
B. NEW STAYS OF APPLICATION FOR FY 2026/2027 No. HS Code Item description Illustration Decision
Import duty is applicable at a rate of A fuel marker for mineral oils is an interme- 10% instead of 0% for one year diate product and is a specialized chemical additive or tracer introduced into petroleum products-such as diesel, heating oil, or kerosene.
It uniquely identifies the fuel, curb product adulteration, and enforce compliance with regulatory and environmental standards.
No. HS Code Item description Illustration Decision
coverings and Import duty is applicable at a rate of those made of plastics 35% instead of 25% for one year 57.02 57.03 The above textile floor coverings feature an exposed surface made of woven or tufted fi- 57.04 bers (like wool or nylon), and the plastic floor 57.05 coverings are solid, non-fibrous sheets or tiles made of polymers like PVC vinyl. 39.18
3 9609.10.00 Pencils Import duty is applicable at a rate of A pencil is a writing or drawing tool with a 35% instead of 25% for one year solid pigment core (like graphite) encased in wood or a similar material.
No. HS Code Item description Illustration Decision 4 4016.92.00 Erasers Import duty is applicable at a rate of An eraser (also called a rubber) is a stationery 25% instead of 10% for one year tool used to remove pencil or ink marks from paper.
Uganda is producing them Locally
5 6307.10.00 Dusters Import duty is applicable at a rate of A chalkboard duster (also known as a chalk- 35% instead of 25% for one year board eraser) is a handheld tool specifically designed to wipe away chalk markings from a blackboard or slate. It provides a clean, clear slate for writing without smearing or scratching the board's surface.
Uganda is producing them Locally
6 9017.20.00 Rulers Import duty is applicable at a rate of 10% instead of 0% for one year A school ruler is a standard stationery tool used by students primarily in mathematics, geometry, and art classes to measure lengths and draw straight lines.
Uganda is producing them Locally
No. HS Code Item description Illustration Decision
household Import duty is applicable at a rate of articles and parts thereof 35% instead of 25% for one year 7615.10.90
Uganda is producing them Locally
No. HS Code Item description Illustration Decision
from Import duty is applicable at a rate of Aluminium. 35% instead of 10% for one year 7607.19.10 Uganda is producing them Locally
No. HS Code Item description Illustration Decision
is applicable at a rate of 35% instead of 0% for one year 7306.21.00 A stainless steel tube is a hollow structural component made from a rust-resistant steel alloy containing at least 10.5% chromium, which forms a protective self-healing layer against corrosion.
Uganda is producing them Locally
No. HS Code Item description Illustration Decision
articles / Dust Import duty is applicable at a rate of bins and crates. 35% instead of 25% for one year
Uganda is producing them Locally
No. HS Code Item description Illustration Decision
duty is applicable at a rate of 25% or US$350/MT whichever is - Of high - speed steel higher instead of 25% or US$200/ MT whichever is higher for one year Uganda is producing them Locally
Import duty is applicable at a rate Pisum sativum is a cool-season annual legume of 35% or US$250/MT whichever is native to the Mediterranean region that higher instead of 35% for one year produces edible green seeds enclosed within pods. Cultivated globally as a staple vegeta- ble, it is categorized into garden peas, snow peas, and sugar snap peas based on whether the pod itself is edible. Uganda being well endowed in agriculture is able to produce peas Locally
No. HS Code Item description Illustration Decision
is applicable at a rate of 35% or US$250/MT whichever is 7213.91.90 Steel wire rods are hot-rolled, semi-finished higher instead of 25% or US$200/ steel products typically featuring a circular MT whichever is higher for one year cross-section. Manufactured in continuous lengths and wound into coils, they serve as the primary raw material for drawing into finer wires or for manufacturing forged and cold-headed components
Uganda is producing them Locally in suffi- cient quantities 14 39.07 Polyacetals, other polyether and epoxide Uganda to stay application of EAC resins, in primary forms; polycarbonates, alkyd CET rate of 0% and apply a resins, polyallyl esters and other polyesters, in duty rate of 10% for one year. primary forms. This is intended to align the rates in the heading and curb misclassification in the EAC Com- mon External Tariff (CET). This will promote import substitu- tion
C. INFRASTRUCTURE LEVY No. Exemption of Infrastructure Levy on the following imports Item Exempted Imported Goods Decision Infrastructure Levy • Imports of vaccines Imports of vaccines, medicines, medical • Medicines supplies, pesticides, rodenticides, acaricides, • Medical supplies and insecticides are fully exempted from the • Pesticides Infrastructure Levy. • Rodenticides • Acaricides This exemption will significantly lower landed • Insecticides import costs and reduce the cash-flow burden for medical and agricultural businesses.
D. IMPORT DECLARATION FEES No. Exemption of Import Declaration Fees on the following imports. Item Exempted Imported Goods Decision Import Declaration Fees • Imports of vaccines Imports of vaccines, medicines, medical • Medicines, supplies, pesticides, rodenticides, acaricides, and • Medical supplies insecticides are fully exempted from the Import • Pesticides Declaration Fee. • Rodenticides • Acaricides This exemption will significantly lower landed • Insecticides import costs and reduce the cash-flow challeng- es for medical and agricultural businesses.
E. ENVIRONMENTAL LEVY Imposition of Environmental Levy on worn clothing and other worn articles Item New Imposition Decision Environmental Levy The environmental levy shall be applicable The law targets the massive influx of garments on worn clothing and other worn articles at that quickly become unmanageable waste. the rate of 30% of the CIF value It also heavily aligns with the "Buy Uganda, Build Uganda" (BUBU) policy to bolster local manufacturing and fulfill regional EAC goals of phasing out secondhand clothes.
NOTES
Statutory text reproduced from the Laws of Uganda consolidation — public-domain legislation, consolidated by ULII / Laws.Africa (CC BY 4.0). This is a point-in-time text and may not reflect later amendments; confirm against the latest Uganda Gazette before relying on it.
