Kampala, Uganda: President Yoweri Museveni this week announced he had signed nine new bills into law aimed at streamlining revenue collection, stimulating economic growth, and reducing tax evasion across the country.
The legislation, which takes effect July 1, 2025, introduces major reforms targeting fair taxation, affordable borrowing, and investment incentives.
Among the key measures is the Value Added Tax (Amendment) Act, 2025, which exempts biomass pellets and solar lanterns from VAT and zero-rates the supply of aircraft. The law also grants tax exemptions to designated United Nations-related agencies and specialised institutions operating in Uganda.
The Stamp Duty (Amendment) Act, 2025 eliminates stamp duty on contracts and mortgages, a move expected to ease borrowing costs and stimulate lending in the real estate sector. Previously, businesses and individuals paid a 0.5% stamp duty on mortgage deeds— a requirement that many said stifled investment.
The Excise Duty (Amendment) (No.2) Act, 2025 introduces relief for businesses by allowing taxpayers to apply for remission of excise duty on damaged, expired, or obsolete goods.
Other significant legislation includes the Tax Procedures Code (Amendment) Act, 2025, which sets new compliance guidelines for taxpayers, and the Supplementary Appropriation Act, 2025, allocating up to Shs 4.8 trillion to priority sectors such as defence, security, and infrastructure development.
The remaining acts signed into law are the Hides and Skins (Export Duty) (Amendment) Act, 2025, External Trade (Amendment) Act, 2025, and the Appropriation Act, 2025, all designed to bolster domestic resource mobilisation and industrial growth.
According to the Ministry of Finance, Planning and Economic Development, and the Uganda Revenue Authority, the reforms are in line with Uganda’s Vision 2040 commitment to fiscal discipline, economic transformation, and industrialisation.
“These tax changes are about creating a level playing field and ensuring that every taxpayer contributes fairly to national development,” a senior Ministry of Finance official noted on Tuesday.
Businesses are expected to benefit most from the stamp duty reforms and the VAT exemptions, while analysts say the tax remission on expired goods could significantly reduce operational costs for manufacturers and distributors.
The Uganda Revenue Authority is preparing compliance guidance for taxpayers, with public sensitisation campaigns planned over the coming weeks to ensure smooth implementation.
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