The Minister of Finance, Planning and Economic Development, Henry Musasizi Ariganyira, has called on taxpayers, businesses and other stakeholders to support the implementation of the 2026/27 National Budget through voluntary tax compliance and stronger partnerships, saying this is essential for sustaining Uganda’s economic growth and improving livelihoods.
Speaking at the Uganda Revenue Authority (URA) National Budget Breakfast Dialogue and the launch of the URA Service Charter in Kampala on Tuesday, Minister Musasizi said the annual engagement provides an important platform for government, taxpayers, the private sector, development partners and civil society to discuss the country’s fiscal priorities and strengthen collaboration.
Minister Musasizi noted that while the 2026/27 National Budget has already been presented to Parliament, its success depends on effective implementation.
“The Budget does not end when it is read in Parliament. It succeeds only when it is understood by those who implement it, accepted by those who finance it, and translated into practical actions that improve the lives of citizens,” Musasizi said.
The minister said the dialogue gives government an opportunity to explain the rationale behind the Budget, clarify newly approved tax measures and receive feedback from stakeholders.
He stressed that an effective tax system should be built on trust, transparency, fairness and mutual respect between taxpayers and government, rather than relying solely on laws and enforcement.
Musasizi said Uganda’s economy has remained resilient despite global challenges, including the COVID-19 pandemic, supply chain disruptions, geopolitical tensions and rising commodity prices. He attributed this resilience to sound macroeconomic management, which has helped maintain low inflation, a stable Uganda shilling, increased foreign direct investment, growing exports and a recovery in the tourism sector.
He revealed that the economy is projected to grow by 6.4 percent in the 2025/26 financial year, expanding to approximately Shs250 trillion (about US$69 billion). With the anticipated start of commercial oil production later this year and continued investment in productive sectors, Uganda’s economy is expected to grow by more than 10 percent in the 2026/27 financial year, marking the country’s first return to double-digit growth in decades.
The minister said the government’s priority is to ensure that economic growth translates into tangible benefits for citizens through job creation, higher household incomes, expanded business opportunities, poverty reduction and improved public services.
He explained that the 2026/27 Budget focuses on fully monetising Uganda’s economy by promoting commercial agriculture, industrialisation, expansion of the services sector, digital transformation and improved market access.
On domestic revenue mobilisation, Musasizi said government remains committed to implementing the Second Domestic Revenue Mobilisation Strategy to reduce reliance on borrowing and external assistance.
He said government aims to increase domestic revenue collection from 14 percent to 20 percent of GDP over the medium term through digital transformation, formalisation of businesses, improved tax administration and enhanced taxpayer services.
For the 2026/27 financial year, government projects to collect Shs45.96 trillion in domestic revenue, including Shs40.16 trillion in tax revenue to finance national development while maintaining fiscal sustainability.
However, Musasizi emphasised that achieving these targets requires a collective effort.
“It requires a growing economy, thriving businesses, voluntary compliance, a fair and predictable tax administration and trust between Government and taxpayers,” he said.
He highlighted several tax measures approved by Parliament to support economic growth and improve taxpayer welfare. These include increasing the monthly Pay As You Earn (PAYE) tax-free threshold from Shs235,000 to Shs335,000, allowing low-income earners to retain more of their income.
Government has also doubled the annual VAT registration threshold from Shs150 million to Shs300 million, a move expected to reduce compliance costs for small businesses and enable them to focus on growth and job creation.
Minister Musasizi announced that the Ministry of Finance will introduce a digital accounting tool to help small and medium-sized enterprises (SMEs) keep proper business records and improve financial management.
The Budget also provides tax incentives to support industrialisation and investment, including incentives for ultra-luxury tourism facilities, extension of VAT deferment on iron ore processing inputs and reforms affecting Tier IV financial institutions.
In addition, Parliament approved measures such as a 5 percent withholding tax on foreign interest payments, harmonised taxation within the gaming sector and selected excise and environmental taxes aimed at broadening domestic revenue while supporting public policy objectives.
Musasizi called on the private sector to continue investing, creating jobs, adding value and formalising businesses, while assuring investors that government remains committed to maintaining macroeconomic stability and a competitive business environment.
He also urged professional bodies to promote ethical practice and help taxpayers understand their obligations, while encouraging URA to uphold professionalism, fairness and innovation in service delivery.
He asked all Ugandan’s to view paying taxes not only as a legal obligation but also as a contribution towards the country’s future development.
The Commissioner General of Uganda Revenue Authority, John R. Musinguzi, has urged taxpayers to embrace the new tax reforms for the 2026/27 financial year, saying they are essential for boosting revenue collection, strengthening the economy and reducing Uganda’s reliance on foreign borrowing.
Musinguzi said the dialogue was intended to help taxpayers understand the tax amendments recently approved by Parliament and prepare for their implementation.
He congratulated the Minister of Finance, Planning and Economic Development, Henry Musasizi Ariganyira, on his appointment and thanked President Yoweri Kaguta Museveni for his leadership. He also commended taxpayers across the country for honouring their tax obligations, describing their compliance as vital to national development.
Musinguzi said the new tax amendments will affect businesses and individuals in different ways and stressed the importance of public awareness to ensure smooth implementation.
He cited changes to the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), noting that penalties for non-compliance have been revised from a fixed Shs5 million to double the tax due on goods and services or ten currency points, whichever is higher.
He added that other reforms, including changes to the Value Added Tax (VAT) threshold, would be discussed during panel sessions alongside other tax administration initiatives.
Musinguzi said increasing domestic revenue remains a national priority, revealing that Uganda is targeting a tax-to-GDP ratio of at least 18 percent, up from 14.27 percent recorded in the 2024/25 financial year, compared to 13.71 percent the previous year.
According to him, achieving an 18 to 20 percent tax-to-GDP ratio would indicate a stronger, more formalised economy capable of financing public services and infrastructure without excessive dependence on external debt.
He expressed confidence that the combination of tax reforms, digital transformation at URA and the commitment of the authority’s staff would enable Uganda to achieve the ambitious target with the support of taxpayers.
Musinguzi encouraged taxpayers facing challenges with tax compliance to seek assistance from URA’s Client Experience team, which provides immediate support through the authority’s call centre and other customer service platforms.
He also announced the launch of the URA Client Service Charter, describing it as a major milestone in improving service delivery.
The charter outlines service standards, mechanisms for resolving disputes without litigation, improved access to tax exemptions, faster customs clearance procedures and expanded digital support through URA’s Contact Centre, Touchpoint and other online platforms.
It also provides channels for whistleblowing and reporting staff misconduct, reinforcing the authority’s commitment to integrity, transparency and accountability.
Musinguzi said the charter is publicly available on the URA website and reflects the authority’s renewed commitment to delivering simplified, timely and reliable revenue services.
He further revealed that URA has deployed a dedicated tax education team to help taxpayers understand the new tax amendments and their impact on businesses.
The team, he said, will conduct nationwide engagements during the financial year to ensure that taxpayers across the country receive adequate information and support, leaving no one behind in tax education and awareness.
