A cross-section of business groups has opposed the proposed tax amendment bills 2026, arguing that the measures are unfair and could disrupt their operations.
The entities included the Uganda Hotel Owners Association (UHOA), Uganda Bankers Association (UBA), Institute of Certified Public Accountants of Uganda (ICPAU), Kampala Casino, the Uganda Alcohol Policy Alliance (UAPA), the Uganda Tobacco Taxation Coalition (UTTC), Airtel Mobile Money and MTN Mobile Money.
The groups presented their concerns while appearing before parliament’s finance committee.
“We have come to give our position on the proposed Tax Amendment Bills 2026, where government seeks to increase income tax, excise duty and stamp duty among others,” Bob Kabonero of Kampala Casino said.
Kabonero warned that increasing income tax on casino operators could lead to the collapse of their businesses. He noted that casinos operate in a global market and should not be subjected to disruptive tax changes.
Representatives of the Uganda Hotel Owners Association, Cephas Birungyi Kagyenda and Yogi Biriggwa, criticised the proposal to introduce a 0.5% alternative minimum tax on businesses that carry forward losses for more than seven consecutive years.
The hoteliers explained that capital-intensive projects such as hotels, infrastructure and large-scale real estate developments often take long to become profitable due to high upfront costs and extended gestation periods.
They also opposed the proposed 5% capital gains tax on the sale of non-business assets, arguing that it contradicts the principle of income tax and has not been adequately prepared for.
The Uganda Bankers Association also raised concerns about the proposed minimum tax.
Trevor Lukanga said the 0.5% levy on loss-making companies would lead to inequitable outcomes. He recommended that the proposal should not be enacted and called for clarity on its commencement if adopted.
The bankers further opposed the proposed withholding tax on interest paid outside Uganda, arguing that foreign debt financing is a critical source of long-term capital for both the private and public sectors.
Other issues highlighted included proposed revisions to excise duty rates on fuel and other goods and services.
Mobile money operators also rejected the proposed 0.5% levy on withdrawals.
Japeth Aritho of Airtel Money Services urged the committee to remove the tax, saying it could discourage digital transactions. He proposed a reduction to 0.25% to avoid double taxation and promote financial inclusion.
Aritho said there was a need to ensure a level playing field across all payment service providers, arguing that any taxes on financial services should be applied uniformly, including to ATMs and agency banking.
Former lands minister Daudi Migereko attended the meeting alongside his daughter, Shina Migereko, as part of the Uganda Hotel Owners Association delegation.
At one point, the committee chair drew laughter from members after correcting Migereko on how to use the microphone.
In response, Migereko said he had become unfamiliar with the technology after a long time away from cabinet and parliament, prompting cheers from those present.
