Finance Minister Henry Musasizi has defended President Yoweri Kaguta Museveni’s proposed amendments to the Income Tax (Amendment) Bill, 2026 and the Excise Duty (Amendment) Bill, 2026, saying the changes are designed to improve tax fairness while safeguarding economic growth.

Appearing before Parliament’s Committee on Finance, Planning and Economic Development, Musasizi said the amendments seek to balance government revenue mobilization with environmental protection and the need to avoid placing unnecessary financial pressure on businesses and consumers.

“The amendments are intended to strike a balance between revenue mobilization, economic growth, environmental protection and tax fairness while preserving the original policy objectives of government,” Musasizi told the committee.

Among the proposed changes, President Museveni wants winnings from land-based casinos to be subject to a 15% withholding tax, matching the rate already imposed on online casino winnings.

Musasizi said aligning the tax treatment would close loopholes, reduce tax avoidance, and prevent revenue leakage within Uganda’s gaming sector.

“The President proposed that winnings from land-based casinos should also be subjected to a 15% withholding tax, just like online casinos, to curb tax avoidance and revenue leakage,” he said.

He added that applying the same tax rate to both online and land-based casinos would create a level playing field for gaming operators. Museveni also urged Parliament to reconsider a proposed increase in excise duty on single-use plastics from 2.5% to 25%, warning that the sharp hike could have unintended economic consequences because affordable alternatives remain limited in Uganda.

“The President wants a 2.5% excise duty tax on single-use plastics maintained, saying the increase to 25% is substantial, given the limited plastic alternatives in Uganda,” Musasizi said.

According to the minister, maintaining the current 2.5% rate would help shield consumers and manufacturers from sudden cost increases while government continues to promote affordable alternatives and strengthen waste management systems.

Members of the committee questioned how the proposed amendments could affect government revenue. In response, Musasizi assured lawmakers that the changes would continue to support Uganda’s broader objectives of increasing domestic revenue, promoting responsible business practices, and advancing environmental protection.