The Ugandan government has introduced four tax bills proposing major reforms, including using the National Identification Number as a Tax Identification Number.
The move aims to streamline tax collection, improve taxpayer identification, and minimize evasion.
Minister of State for Finance Henry Musasizi emphasized the benefits of the proposal.
“We are proposing to use the National Identification Number as a Tax Identification Number to enhance taxpayer identification and reduce tax evasion,” he stated.
The bills—Tax Procedures Code (Amendment) Bill 2025, Income Tax Bill 2025, Hides and Skins (Export Duty) (Amendment) Bill 2025, and Value Added Tax (Amendment) Bill 2025—seek to enhance tax compliance and administration while improving revenue collection.
One key provision is the extension of the tax exemption for Bujagali Electricity Limited until 2032, a move expected to support Uganda’s energy sector and foster economic growth.
Additionally, the proposed amendments introduce a new clause in Section 47B of the Tax Procedures Code Act. This provision grants a waiver on interest and penalties for taxpayers who settle their principal tax obligations.
“Any interest and penalty outstanding as of 30th June 2024 shall be waived where the taxpayer pays the principal tax by 30th June 2026,” the bill states.
The waiver aims to encourage taxpayers to clear outstanding debts, reduce disputes, and enhance compliance.
These tax reforms come as the government intensifies efforts to expand the tax base and boost revenue collection. Parliament will now scrutinize the bills before they can be enacted into law.
