The Uganda Manufacturers Association (UMA) has unveiled 2025/26 tax proposal to Parliament, outlining key fiscal recommendations aimed at boosting industrial growth, enhancing local manufacturing competitiveness, and fostering job creation.
While appearing before Parliamentary Committee of Finance, Planning, and Economic Development earlier today Wednesday April 23, 2025, UMA officials urged parliament to pass the income tax amendment bill 2025 but with changes to extend the proposed income tax exemption from three to five years.
Among the key proposals included a series of tax incentives, adjustments to import duties, and policy reforms designed to stimulate domestic production and attract investment into Uganda’s manufacturing sector.
UMA emphasized the need for a more predictable and supportive tax regime to drive sustainable economic development.
Hon. Dickson Kateshumbwa, a former Commissioner of Customs at the Uganda Revenue Authority and current Member of Parliament for Sheema Municipality, urged UMA officials to handle some of their proposals administratively instead of proposing a law.
Some MPs called for comprehensive tax reforms to address revenue challenges and ensure a more equitable tax system.
They have emphasized the need to increase scrutiny on tax exemptions and diversify the tax base to ensure that a larger portion of the population contributes to revenue generation.
Other MPs expressed concerns about the potential negative impact of the proposed tax changes on businesses and individuals.
They further highlighted issues such as the burden of multiple taxes and the need for a more predictable and supportive tax regime to drive sustainable economic development.
UMA, an umbrella organization for manufacturers in Uganda, has been in existence since 1988. The manufacturing sector contributes 23% of the country’s tax revenue and employs nearly 2 million Ugandans. Manufacturers also account for 70% of Uganda’s electricity consumption.
