Government Seeks to Raise Shs4.8 Trillion from Tax

[Da Dona]

Courtesy: www.monitor.co.ug

The government has unveiled a series of tax proposals aimed at raising Shs4.8 trillion for the 2026/2027 financial year, a move that analysts warn could hit businesses and consumers hard.

The proposals include revisions to income tax, excise duties on fuel, alcohol, sugar, and mobile money transactions, as well as adjustments to capital gains tax. The measures are intended to boost revenue collection and fund critical public services.

Economists, however, caution that some of the planned increases could lead to higher prices for goods and services, potentially straining household budgets. Businesses in key sectors like transportation and manufacturing are also expected to feel the impact of higher operational costs.

Government maintains that the reforms are necessary to bridge the budget deficit and ensure sustainable development. Parliament is expected to review the proposals in the coming weeks before they are enacted.