The State Minister of Finance, Henry Musasizi, has announced that the government will not introduce any new taxes in the 2025/2026 financial year.
The minister made the revelation during a giveaway ceremony for the daughter of prominent businessman Cyril Mugyenyi in Kabale Municipality.
Minister Musasizi emphasised the government’s commitment to proper utilization of existing taxes and tackling corruption in public fund management.
He also expressed gratitude to the business community for fulfilling their tax obligations, highlighting how these contributions support social services nationwide.
“We believe that if we properly utilise the current taxes and reduce the corruption in agencies like Uganda Revenue Authority and so many others, we will manage to operate without introducing new taxes,” Minister Musasizi said.
According to Musasizi, sufficient revenue collection is crucial for achieving economic stability and reducing reliance on borrowing.
This approach aligns with the government’s efforts to promote economic growth and development.
“I know sometimes it feels difficult to pay taxes, but it’s the only means by which we are keeping this country peaceful, safe, and secure through financing security operations, construction of roads, electricity, and health,” Minister Musasizi said.
This decision not to introduce new taxes is a significant departure from previous years, where tax amendments were common.
Instead, the government will focus on revising existing tax laws to optimize revenue collection.
In the current budget, the triggered several tax amendments, including new income tax rates, stamp duty exemptions, and VAT changes. The goal of these changes is to improve tax compliance and attract investment.
