Legislators on the Finance Committee have backed President Museveni’s decision to return the Income Tax and Excise Duty Amendment Bills to Parliament, stressing the need for deeper review and research before assent. The move comes amid concerns over unfair competition, revenue leakage, and economic strain.

Legislators during a Committee on Finance, Planning, and Economic Development meeting chaired by Hon. Maximus Ochai have agreed with the president's decision to decline signing the Income Tax (Amendment) Bill, 2026, citing that proper review and research must be conducted before the bills are assented to. This comes after President Museveni returned the bills to Parliament for reconsideration, citing risks of unfair competition, revenue leakage, and economic strain.

The taxes were originally scheduled to take effect on July 1st, 2026, marking the start of the 2026/2027 financial year after Parliament passed the Income Tax (Amendment) Bill, 2026, and the Excise Duty (Amendment) Bill, 2026, ahead of the new financial year. The president rejected a clause exempting land-based casinos from withholding tax on betting and gaming winnings, arguing it creates an uneven playing field and encourages tax avoidance compared to other gaming operators. Members of the committee were in agreement, noting the need for fairness and equity for all taxpayers.

He also pointed out clause 2(e) of the Excise Duty Bill, saying the increase from 2.5% to a 25% tax on single-use plastics is excessive and could adversely affect production and the sector at large, considering that viable alternatives to plastic packaging are not yet readily available in Uganda. However, some legislators disagreed with this, with others even stating that the president was misguided.

Hon. James Kakooza, the Member of Parliament representing Older Persons for the Central Region, emphasized the need not to rush the matter without proper research, tasking the Minister of Finance to provide a detailed report on how the bill could possibly impact the economy.

The committee adjourned until 16th July 2026, awaiting the minister of finance to appear and present a report for further discussion before the bill is formally tabled.