The Minister for Finance Hon. Henry Musasizi has presented the government's position on returned tax bills to the Finance Committee of Parliament.
The presentation followed President Yoweri Kaguta Museveni’s decision to return two key financial bills for parliamentary reconsideration.
The President returned both the Income Tax (Amendment) Bill, 2026, and the Excise Duty (Amendment) Bill, 2026.
Minister Musasizi defended the recommittal of Clause 11 of the Income Tax Bill and Clause 2(e) of the Excise Duty Bill.
He explained that the administration wants to strike a balance between economic growth, environmental protection, revenue mobilization, and tax fairness.
President Museveni expressed strong concerns over Parliament's decision to exempt winnings from land-based casinos from withholding tax.
The President argued that winnings from land-based casinos must attract a 15% withholding tax to match the rate applied to online gambling.
"Exemption for land-based casinos creates unnecessary opportunities for tax avoidance and revenue leakage," Musasizi said.
The minister revealed that the casino tax measure alone will generate UGX 65 billion for the 2026/27 financial year.
President Museveni also objected to the proposed single-use plastics tax.
He advised that raising the excise duty on single-use plastics from 2.5% to 25% is excessive.
Such a steep increase would harm domestic production costs, employment, investment, and business competitiveness.
The President also noted that suitable packaging alternatives are not yet widely available across the country.
The revised plastics amendment is estimated to generate UGX 3 billion in additional tax revenue.
Minister Musasizi urged the committee members to adopt the changes proposed by the President.
