Finance Minister Henry Musasizi has backed President Yoweri Kaguta Museveni’s proposed amendments to the Income Tax (Amendment) Bill, 2026 and the Excise Duty (Amendment) Bill, 2026, saying the changes will promote tax fairness while protecting economic growth.
Appearing before Parliament’s Committee on Finance, Planning and Economic Development, Musasizi said the proposed amendments are intended to balance government’s revenue mobilisation goals with environmental concerns and the need to avoid placing excessive burdens on businesses and consumers.
“The amendments are intended to strike a balance between revenue mobilisation, economic growth, environmental protection and tax fairness while preserving the original policy objectives of government,” Musasizi told the committee.
On casino winnings, President Museveni proposed that winnings from land-based casinos should also attract a 15% withholding tax, similar to the tax already applied to online casinos.
Musasizi said applying the same tax rate to both categories would help close loopholes and prevent revenue losses in the gaming sector.
“The President proposed that winnings from land-based casinos should also be subjected to a 15% withholding tax, just like online casinos, to curb tax avoidance and revenue leakage,” he said.
The minister added that harmonising the tax treatment of online and land-based casinos would create a level playing field among operators in the gaming industry.
On single-use plastics, Museveni has asked Parliament to reconsider a proposed increase in excise duty from 2.5% to 25%, arguing that the sharp rise could have significant effects given the limited availability of alternatives in Uganda.
“The President wants a 2.5% excise duty tax on single-use plastics maintained, saying the increase to 25% is substantial, given the limited plastic alternatives in Uganda,” Musasizi said.
He explained that retaining the current rate would prevent sudden cost increases for consumers and manufacturers while government continues efforts to promote affordable alternatives and strengthen waste management systems.
Members of the committee questioned the possible impact of the proposed changes on government revenue collections.
Musasizi assured lawmakers that the amendments would still support government’s broader objectives of increasing domestic revenue mobilisation, encouraging responsible business practices and protecting the environment.
