The Minister of State for Finance, Planning and Economic Development, Henry Musasizi, has revealed that the Uganda Revenue Authority (URA) is expected to collect Shs 44.5 billion in taxes to support a proposed Shs 84.209 trillion national budget for the 2026/27 financial year.
Musasizi also indicated that fuel prices are set to rise by Shs 200 per litre, following endorsement of the measure by National Resistance Movement (NRM) MPs during the party’s Parliamentary Caucus meeting on Friday.
The minister highlighted that arts and primary school teachers will receive phased salary enhancements costing the government Shs 2.5 trillion. “In this financial year, we have provided 25%. We will increase salaries in phases until they reach parity with other science teachers,” Musasizi explained.
Government Chief Whip, Hamson Obua, said the NRM caucus prioritized the budget for FY 2026/27, covering initiatives in peace, roads, electricity, railways, AFCON 2027, scientific innovation, and restocking efforts in Teso, Lango, and Acholi regions, alongside salary enhancements for primary school teachers, secondary arts teachers, and security personnel.
Musasizi also clarified PAYE tax changes, dismissing reports of a rate increase from 15% to 40%. Instead, the PAYE threshold will rise from Shs 235,000 to Shs 335,000, exempting individuals earning below this amount from tax.
“We are not increasing taxes; rather, we are favoring those who earn little,” Musasizi said, noting that high earners above Shs 10 million per month will continue paying 40%.
The minister added that other public servants, including Chief Administrative Officers (now earning Shs 12 million, up from Shs 1.8 million), UPDF officers, and assistant commissioners, will also receive gradual salary enhancements starting January 2026.
