As Uganda prepares for the 2026/2027 financial year, the Ministry of Finance, Planning and Economic Development has called on citizens, businesses, and civil society organisations to submit tax proposals that will inform the national budgeting and policy-making process. The move is part of the government’s effort to enhance transparency and public participation in shaping the country’s tax system.
According to Mr. Moses Kaggwa, Director of Economic Affairs at the Ministry, the proposals are meant to guide policy formulation and ensure that Uganda’s tax framework supports inclusive economic growth. “We believe in participatory policy development. The public’s input helps us understand what is working and what needs to be improved,” he stated.
This open call comes at a time when there is increasing public debate about the fairness, complexity, and effectiveness of Uganda’s tax system. In response, tax analysts and civil society actors have welcomed the invitation but are urging the government to go beyond technical adjustments and consider deeper structural reforms.
Among the key reforms being proposed is a review of tax exemptions granted to startups and small businesses. Experts argue that while tax holidays and incentives are intended to promote entrepreneurship, many startups do not benefit because the current framework often favors larger, more established firms. They suggest a more inclusive incentive structure that supports innovation and early-stage enterprises.
Another major concern is the administration of rental income tax by local governments. Analysts note that inconsistent assessments and weak enforcement mechanisms have led to revenue leakage and taxpayer dissatisfaction. They recommend strengthening local revenue collection systems, improving data sharing between national and local authorities, and simplifying compliance processes for landlords.
In addition, there is growing advocacy for revising the Pay-As-You-Earn (PAYE) income tax threshold. Currently, low-income earners are often taxed in ways that reduce their disposable income, especially amid rising living costs. Civil society groups are calling for a higher tax threshold to ease the burden on ordinary workers and enhance disposable income, which could stimulate domestic consumption.
These reform proposals are expected to spark robust discussions during the budget formulation cycle, with many hoping the government will seriously consider changes that promote equity, efficiency, and economic resilience.
As the Ministry continues to receive submissions, stakeholders are encouraged to participate actively and propose practical, evidence-based solutions that align with Uganda’s long-term development goals.