Government Calls for Public Input in Tax Policy as Uganda Targets Tenfold Economic Growth

The Ministry of Finance, Planning and Economic Development has invited stakeholders and the public to submit proposals on tax policy reforms for the Financial Year 2026/27, as part of efforts to strengthen transparency, participation, and inclusiveness in Uganda’s budget-making process.

Speaking during a media briefing on Tuesday, Mr. Moses Kaggwa, Director of Economic Affairs at the Ministry, said stakeholder engagement is crucial in shaping a tax system that balances revenue mobilization with economic growth.

“Tax affects businesses and individuals because it takes away resources and imposes obligations to account for them. It is therefore important that stakeholders are adequately consulted so they can participate effectively in the processes that lead to the formulation and review of tax policy,” Mr. Kaggwa said.

Mr. Kaggwa noted that government’s reforms are aligned with the Tenfold Growth Strategy, which aims to expand Uganda’s economy from USD 50 billion in FY2020/21 to USD 500 billion by 2040. The strategy is anchored on four Areas of Targeted Market Stimulation (ATMS)—Agro-Industrialisation, Tourism Development, Mineral-Based Industrialisation, and Science, Technology & Innovation, including ICT and Creative Arts.

Supporting these are several key “enablers” such as peace and security, human capital development, infrastructure, regional integration, irrigation, fighting corruption, and environmental protection.

“To achieve the Tenfold Growth Strategy, government must enhance revenue mobilization in a predictable, equitable and sustainable manner. This means raising collections from 14% of GDP in FY2022/23 to 30% by FY2039/40,” he explained.

According to the Ministry, continued reforms in tax policy have yielded tangible results. In FY2024/25, Uganda’s revenue-to-GDP ratio rose to 14.27%, up from 13.71% the previous year. Total collections grew at 15.6%, above the four-year average growth rate of 12.8%, generating a surplus of UGX 21 billion. Targeted tax measures alone contributed over UGX 1.4 trillion in additional revenue.

Mr. Kaggwa attributed this performance to annual tax policy reviews, which have given Uganda Revenue Authority (URA) clearer laws, better enforcement tools, and improved compliance mechanisms.

The Ministry reiterated that Uganda’s tax policy is guided by principles of neutrality, equity, simplicity, transparency, low compliance costs, efficiency in administration, flexibility, and sustainability.

“Our tax laws and administrative processes are designed to be predictable and fair, to encourage voluntary compliance, and to reduce loopholes and revenue leakages,” Mr. Kaggwa said.

How Tax Policies Are Made

The briefing outlined Uganda’s structured tax policy cycle:

Strategic and Planning Phases – where objectives are set through consultations with government agencies, private sector, civil society, academia, and the public.

Formulation Phase – technical analysis of proposals to ensure they generate revenue, broaden the tax base, enhance compliance, and align with national priorities.

Cabinet Approval and Legislation – proposals are submitted to Cabinet, and once approved, the Ministry of Justice drafts Bills which Parliament debates and enacts into law.

Implementation and Monitoring – URA administers tax laws, while the Ministry continuously evaluates their effectiveness and impact.

Currently, Uganda’s tax system is operationalised under key laws such as the Income Tax Act, Value Added Tax Act, Stamp Duty Act, Excise Duty Act, Tax Procedures Code Act, and the Tax Appeals Tribunals Act.

Mr. Kaggwa urged the media to play an active role in simplifying tax matters for the public, noting that accurate reporting can influence compliance and investor confidence.

“Members of the media play a vital role in shaping public understanding of tax issues. The way you communicate tax matters can determine how taxpayers respond to their obligations,” he said.

The Ministry has now opened its annual tax policy consultation window and will be receiving proposals for FY2026/27. Submissions can be made in writing to the Permanent Secretary/Secretary to the Treasury.

“The government is committed to strengthening public engagement, enhancing transparency, and ensuring that our tax system promotes economic growth, job creation, and social equity,” Mr. Kaggwa concluded.

Mr. Abel Kagumire, Acting Commissioner General of the Uganda Revenue Authority (URA), addressed concerns raised by traders regarding the handling of groupage containers.

He explained that small-scale traders often purchased goods from Dubai or China and shipped them under the names of “container leaders.” Upon arrival in Uganda, some of these leaders withheld goods from the rightful owners, leading to disputes and complaints filed with URA.

On the broader issue of tax administration, Mr. Kagumire stressed that Uganda’s challenges were less about tax policy and more about compliance and perception. He called on the media to play a constructive role in educating the public about their tax obligations.

He reaffirmed URA’s commitment to partnering with citizens, associations, and the media to strengthen tax education and ensure that every Ugandan contributes fairly to national revenue.