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The House unanimously agreed to the second reading, allowing the Bill to proceed swiftly to the Committee Stage for clause-by-clause scrutiny
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PARLIAMENT
Parliament has passed the Stamp Duty (Amendment) Bill, 2026 after the Minister of State for Finance (General Duties), Hon. Henry Musasizi, moved and seconded the motion for its second reading.
The House unanimously agreed to the second reading, allowing the Bill to proceed swiftly to the Committee Stage for clause-by-clause scrutiny. It was subsequently passed and now awaits presidential assent before taking effect on 1st July 2026.
What is Stamp Duty?
Stamp Duty is a form of tax levied on specific legal documents and instruments (known as “dutiable instruments”) under Uganda’s Stamp Duty Act, Cap. 339. It is charged when documents that create, transfer, or evidence rights or liabilities — such as land transfers, share transfers, leases, loan agreements, and vehicle registrations — are executed. The duty can be either a fixed amount or a percentage of the value of the transaction. Its main purpose is to generate non-tax revenue for the government while providing legal validity and enforceability to important documents. Without proper stamping, many documents may not be admissible in court or accepted by authorities like the Uganda Registration Services Bureau (URSB). 
Hon. Henry Musasizi, moved and seconded the motion for its second reading
Key Changes in the 2026 Amendment
The Bill introduces several significant reforms aimed at improving compliance, modernising administration, and increasing revenue:
Doubling of duty on land and share transfers: The rate rises from the current 1.5% to 3% of the total value of the property or shares.
New fixed stamp duty on motor vehicles:
Motorcycles, tricycles, and quadricycles: UGX 50,000
Regular/personal motor vehicles: UGX 100,000 – 200,000 (depending on type)
Commercial vehicles: Higher fixed rates
New monthly reporting obligations for banks, microfinance institutions, and other financial service providers.
Five-year record retention requirement for dutiable documents.
Penalty of 2% simple interest per month for late filing of returns.
What This Means for Ordinary Ugandans and Businesses
The amendments will directly increase the cost of several common transactions:
Land and property transfers — Buying or selling land, especially in urban areas, will become noticeably more expensive. Critics, including manufacturers and women’s rights groups, warn that the higher rate could discourage investment, slow down formal land registration, and push more people toward informal deals that offer little legal protection.
Vehicle registration and transfers — Registering a new motorcycle or car, or transferring ownership of a used one, will now attract an additional fixed charge.
Overall impact — While the government expects higher revenue to fund public services and infrastructure, many stakeholders argue the changes will raise the cost of doing business, affect home ownership dreams, and increase logistics costs that may eventually be passed on to consumers.
Supporters of the Bill say the measures will strengthen tax compliance and help Uganda mobilise more domestic revenue as it aims to raise its tax-to-GDP ratio.
The Stamp Duty (Amendment) Bill, 2026 forms part of a broader package of tax proposals for the 2026/27 financial year. Its passage marks another step in Parliament’s consideration of the revenue-raising measures presented by the Ministry of Finance.
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