The Ministry of Finance, Planning, and Economic Development is in the final stages of drafting Uganda’s National Tax Policy, set to be released to the public in December 2024. This new policy will provide structured guidelines for the taxation of goods, services, and income, aimed at improving revenue mobilization.
State Minister for Finance (General Duties), Hon. Henry Musasizi, announced the development during a plenary session in Parliament, responding to concerns raised by the Leader of the Opposition, Joel Ssenyonyi. Ssenyonyi highlighted the issue of over-taxation, which he argued has hindered the growth of small businesses and strained working families. He emphasized the need for a comprehensive tax framework to guide the imposition of taxes.
Musasizi acknowledged the concerns and explained that the government’s increased investments in oil, gas, and infrastructure have contributed to rising debt obligations. However, he reassured that Uganda’s debt-to-GDP ratio remains within acceptable limits, currently standing at 46.91 percent, below the 52.4 percent threshold outlined in the Charter for Fiscal Responsibility.
The minister also addressed the high youth unemployment rate, pointing to government initiatives such as the Parish Development Model and the EMYOOGA program, which have created significant employment opportunities. Additionally, Musasizi highlighted efforts to combat corruption through the implementation of automated systems, which reduce direct human interaction in key financial processes.
As the nation awaits the release of the National Tax Policy, it is expected to offer a more balanced and structured approach to taxation, potentially alleviating some of the economic pressures currently faced by businesses and households across Uganda.