Uganda Revenue Authority (URA) has reintroduced a tax waiver on interest and penalties in a fresh bid to boost voluntary tax compliance and support economic recovery.
The waiver, announced by the Ministry of Finance through URA, allows taxpayers to clear their outstanding principal tax — accumulated up to June 30, 2024 — by June 30, 2026, and receive a 100% waiver on interest and penalties.
URA Commissioner General John Musinguzi said the decision was prompted by feedback from taxpayers who missed out on the previous waiver, which ended in January 2025.
“Many taxpayers missed out on the last waiver, and we noted this from the requests we received after the closure,” Musinguzi said. “This new extension will give businesses room to recover, relieve their burden, and leave them with more cash to reinvest.”
The waiver covers interest accrued between July 1, 2024, and the date of payment. Taxpayers who clear part of their principal will receive a proportional waiver of interest and penalties. The measure applies strictly to domestic tax obligations and excludes customs duties.
URA has urged taxpayers with missing returns to file and pay to qualify for the relief, emphasizing that this will be the final tax amnesty. “This measure is about building trust between taxpayers and government. We want to encourage voluntary compliance, not just enforcement,” Musinguzi said.
Taxpayers can check their outstanding balances through the URA online portal or by visiting the nearest tax office. Once the principal is settled, the waiver will automatically reflect on the taxpayer’s TIN account.
Traders across Kampala welcomed the announcement, calling it a timely intervention. “This is a good opportunity worth taking up. I appeal to my colleagues to take on this opportunity,” said Denis Mugabi, a trader in downtown Kampala.
Kikuubo trader Samuel Kakeeto agreed, noting the early timing of the waiver. “I like that it has come early in the financial year,” he said.
In Wandegeya, Edgar Ssenkumbi said he intends to seize the chance after missing out on the earlier waiver. “This time, I will not miss this opportunity,” he said.
The government hopes the initiative will help businesses stabilize, encourage compliance, and improve domestic revenue mobilization as the country pushes toward post-pandemic recovery.
