Written By | Joshua Nahamya
Entertainers will have to pay with holding tax in the new amendment bill
Search
PARLIAMENT
The government has unveiled a series of new tax proposals targeting key consumer goods, construction materials, and the entertainment sector as part of efforts to boost domestic revenue for the 2026/27 financial year. The proposals are contained in a set of amendment bills tabled before Parliament by the Minister of State for Finance, Henry Musasizi, including the Excise Duty Amendment Bill, Income Tax Amendment Bill, and amendments to the Stamp Duty Act.
New Levies on Alcohol and Construction Materials
Under the Excise Duty Amendment Bill 2026, government is proposing a UGX 3,500 levy on imported un-denatured spirits with an alcoholic strength of less than 80%.
The same bill introduces a UGX 1,000 tax per 50kg of cement, adhesives, grout, white cement, and lime—raising concerns about increased construction costs if approved.
Additionally, the Ministry of Finance is proposing a UGX 50 per litre or kilogram levy on locally manufactured paints, varnishes, and lacquers, a move expected to further impact the construction sector.
Cooking Oil Prices Likely to Rise
The proposals also target household commodities, with a UGX 500 per litre tax on cooking oil. If passed by Parliament, the measure is expected to push up retail prices, affecting consumers across the country.
Withholding Tax on Entertainers
In the Income Tax Amendment Bill 2026, government is proposing to introduce a withholding tax on public entertainers. Under the proposal, event organizers will be required to deduct tax from entertainers’ gross payments at rates prescribed in the law before making payments. Officials say the measure is aimed at improving tax compliance within the entertainment industry. 
Changes in Financial Services Taxation
Meanwhile, proposed amendments to the Stamp Duty Act will require financial service providers to file monthly stamp duty returns with the Commissioner General at the Uganda Revenue Authority (URA).
The proposal also seeks to:
Revenue Mobilisation Drive
The tax measures form part of the government’s broader strategy to raise UGX 44.5 trillion in domestic revenue, which the Uganda Revenue Authority is expected to collect in the 2026/27 financial year.
This revenue will contribute to financing the proposed UGX 84.209 trillion national budget.
Impact and Outlook
If approved by Parliament, the new tax measures are expected to take effect in July 2026, potentially increasing the cost of living and doing business, particularly in construction and household consumption.
Parliament is now set to scrutinize the proposals amid growing concern from stakeholders over their potential impact on already strained household incomes and the broader economy.
Torch Media Africa
