The Ugandan government has introduced four new tax bills aimed at reforming the country’s tax regime. Among the key proposals is the suggestion to use the National Identification Number (NIN) as the Tax Identification Number (TIN), a move intended to streamline tax collection, enhance taxpayer identification, and reduce tax evasion.
Unveiling the reforms, Minister of State for Finance Henry Musasizi explained, “We are proposing to use the National Identification Number as a Tax Identification Number to enhance taxpayer identification and reduce tax evasion.”
The four bills—Tax Procedures Code (Amendment) Bill 2025, Income Tax Bill 2025, Hides and Skins (Export Duty) (Amendment) Bill 2025, and Value Added Tax (Amendment) Bill 2025—are designed to improve tax administration, compliance, and revenue collection.
Among the key provisions in these bills is the extension of the tax exemption for Bujagali Electricity Limited until 2032, which is expected to support Uganda’s energy sector and spur broader economic growth.
In addition, the reforms introduce a new clause in Section 47B of the Tax Procedures Code Act, offering a waiver on interest and penalties for taxpayers who settle their principal tax obligations. The proposal states, “Any interest and penalty outstanding as of 30th June 2024 shall be waived where the taxpayer pays the principal tax by 30th June 2026.” This waiver is designed to encourage taxpayers to clear outstanding liabilities, boosting compliance and reducing tax disputes.
These proposed reforms come at a crucial time when the Ugandan government is intensifying its efforts to improve revenue collection and expand the tax base. The bills will now undergo scrutiny in Parliament before they can be enacted into law.
