Ugandans should support new tax measures

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OPINION

By Henry Musasizi

According to our projections as the Ministry of Finance, Planning and Economic Development, the next five years will be years of unprecedented economic boom in Uganda.

The Harvard Growth Lab has also predicted that Uganda will, in the next five years, experience exceptionally high economic growth and that by 2031, Uganda will possibly have the fastest-growing economy in the world. In the 2025-2030 fourth National Development Plan (NDPIV), which started in July 2025, the Government has set an ambitious target of expanding Uganda’s economy from the current $65b to more than $158b by 2030.

In all these development plans and strategies, including the 2026-2031 NRM manifesto and the tenfold growth strategy, the Government plans to increasingly repurpose the national budget towards the ATMS sectors, which have high economic returns and potential to greatly increase the economic welfare of Ugandans, reduce poverty, create millions of jobs and expand the country’s tax base.

These ATMS sectors include agro industrialisation and light manufacturing, tourism, minerals beneficiation and value addition, including oil and gas, as well as science, technology and innovation (STI), including ICT and creative arts.

Accordingly, the 2026/2027 national budget, which Parliament will soon approve, gives topmost priority to the above ATMS and the enabling sectors such as energy, works and transport, education, water and environment, as well as security.

The 2026/2027 financial year is so significant because it is also within the same year that Uganda will join the list of oil-producing countries, which will create a very big impact on the economy of Uganda. The 2026/2027 financial year is also the year Uganda and sister East African Community countries Kenya and Tanzania will make advanced stage preparations to host the 2027 African Cup of Nations (AFCON).

Our President, Yoweri Museveni and Kenyan counterpart William Ruto have set for us an ambitious target of ensuring the Nairobi-Malaba-Kampala Standard Gauge Railway is completed by 2028. That means much of the work would have to be done in the 2026/2027 financial year if that target is to be achieved.

The Government will also continue to massively invest more resources in the wealth creation initiatives, such as the Parish Development Model (PDM), Emyooga, cattle restocking, Generating Growth Opportunities for Women Entrepreneurs (GROW), Small Business Recovery Fund, Uganda Development Bank, Uganda Development Corporation (UDC), Agriculture Credit Facility and the Investment for Industrial Transformation and Employment (INVITE) Project that provides support to those who add value to Uganda’s exports.

Clarion call for supporting new tax measures

It is upon that background that I hereby make a clarion call to the different stakeholders, including the private sector and all Ugandans, to support the new tax measures government has proposed in the 2026/2027 national budget to support the country’s development agenda, which is for the common good of our country.

Everyone who has travelled to various nations of the world, especially the developed countries we admire so much, can testify that much more taxes are paid by the citizens of those countries than the taxes Ugandans are paying. Uganda’s tax-to-Gross Domestic Product (GDP) ratio, which has been oscillating between 13% and 14%, is even below that of Sub-Saharan Africa, which is about 16%. Both the World Bank and International Monetary Fund believe that, given the potential of Uganda’s economy, which is among the seven fastest economies in the world, Uganda has the ability to have a tax-to-GDP ratio of over 23%.

Accordingly, with guidance from the President, government has resolved to undertake necessary measures to raise Uganda’s tax-to-GDP ratio to 20% in the medium term and 25% in the long-term.

We have therefore set a revenue target of sh44.5 trillion for the next financial year of 2026/2027, up from the sh37.2 trillion target for this ending financial year of 2025/2026.

President Museveni has repeatedly emphasised on several occasions in the recent past that government will undertake all necessary efforts to fight corruption in the next term of office and ensure that public finances are appropriately allocated and utilised to develop the country and improve the economic welfare of Ugandans.

Drawing from the information provided above, it is certainly a patriotic duty of all the key stakeholders in the economy and all Ugandans to support the new tax measures government has proposed, to support the country’s development agenda.

The implementation of the Government’s development agenda using increased tax revenue and support from development partners will catapult Uganda’s economy to greater heights and create millions of opportunities for Ugandans.

The writer is the state minister for finance, planning and economic development in charge of general duties and the MP for Rubanda East