By UG DIPLOMAT Reporter
Kampala, Uganda | Tuesday, 4 August 2026

Parliament has approved President Yoweri Museveni’s recommendations on the Excise Duty (Amendment) Bill, 2026 and the Income Tax (Amendment) Bill, 2026, maintaining a lower tax burden on single-use plastics while removing a proposed tax exemption for winnings from land-based casinos.

The two Bills had been returned to Parliament by the President for reconsideration after he raised concerns over provisions earlier passed by the House.

During plenary on Tuesday, chaired by Deputy Speaker Thomas Tayebwa, MPs adopted the recommendations contained in the reports of the Committee on Finance, Planning and Economic Development.

On the Excise Duty (Amendment) Bill, Parliament retained the excise duty on single-use plastics at 2.5 per cent or US$70 per tonne, whichever is higher, overturning the earlier proposal of 25 per cent or US$1,500 per tonne.

Presenting the committee report, Hon. James Kakooza, the NRM representative for Older Persons, said the committee agreed with the President that increasing the tax should only be considered after a comprehensive assessment of its impact on the plastics industry.

“The committee agrees with the President that an increase in the excise duty on single-use plastics from 2.5 per cent or US$70 per tonne to 25 per cent or US$1,500 per tonne should be stayed until a thorough study is undertaken to ascertain its impact on the industry,” Kakooza said.

The committee supported expanding the tax coverage to include more single-use plastic products while maintaining exemptions for multiple-use plastics, sanitary pad packaging, vacuum food packaging and pharmaceutical products.

The Ministry of Finance was also tasked to conduct a comprehensive study on plastic taxation and report back to Parliament within six months.

However, the decision faced opposition from some MPs, including Hon. Gyaviira Lubowa (NUP, Nyendo-Mukungwe Division), who questioned the legality of reconsidering Bills passed by the previous Parliament.

Lubowa argued that since the 11th Parliament had already passed the legislation before its dissolution, the Bills should have been reintroduced through a fresh legislative process.

“It is, therefore, irregular to consider Bills that were already passed by the 11th Parliament before it was dissolved,” Lubowa said.

He also criticised government’s changing position on plastic taxation, arguing that the move could lead to a loss of projected revenue estimated at Shs208 billion.

Meanwhile, Hon. Karim Masaba (Independent, Industrial Division) supported the lower tax rate proposed by the President but disagreed with widening the exemptions.

Masaba argued that the exemptions could reduce expected government revenue from Shs208 billion to about Shs3 billion, representing a potential loss of Shs205 billion.

The Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, however, dismissed the revenue concerns, saying the actual impact would be minimal.

He said the President’s position was based on changing circumstances and new information available to government.

“The process of arriving at this decision evolves; we can have a position today as a government but when new information comes, another position can be formed,” Musasizi said.

Parliament Removes Casino Tax Exemption

In a separate decision, Parliament approved the President’s recommendation to remove the withholding tax exemption on winnings from land-based casinos.

The House retained the exemption for winnings paid under the national lottery but agreed that casino winnings should continue attracting tax alongside other betting and gaming activities.

The Chairperson of the Committee on Finance, Planning and Economic Development, Hon. Maximus Ochai, said exempting land-based casinos would create unfair tax treatment and open loopholes for revenue loss.

“The exemption granted to land-based casinos will create unnecessary opportunities for tax avoidance and revenue leakage since it establishes different tax treatment for substantially similar gaming activities solely on the platform through which they are conducted,” Ochai said.

According to the committee, removing the exemption will safeguard projected government revenue of about Shs65 billion by ensuring equal treatment of operators in the betting and gaming sector.

Despite objections from some legislators, Parliament adopted the majority reports and approved the President’s recommendations.

The decisions mean Uganda will maintain a lower excise duty regime for single-use plastics while ensuring that winnings from land-based casinos remain subject to withholding tax.