The Uganda Manufacturers Association (UMA) is currently engaging the Parliamentary Committee on Finance, Planning, and Economic Development of the Parliament of Uganda in discussions surrounding the proposed Tax Amendment Bills for the Financial Year 2026/27.

The engagement forms part of ongoing stakeholder consultations aimed at aligning Uganda’s tax policy framework with the needs of the manufacturing sector and the broader economy. During the session, UMA presented a comprehensive set of policy concerns and recommendations designed to support industrial growth while maintaining business sustainability and economic stability.

Key issues raised include the proposed increase in fuel excise duty, which manufacturers caution could significantly raise production and transportation costs across the value chain. UMA also addressed proposed amendments to income tax, particularly on foreign loan taxation and the alternative minimum tax, noting the potential implications on investment attractiveness and access to financing.

Additionally, the Association highlighted concerns over proposed tax changes affecting essential goods such as alcohol, cement, sugar, cooking oil, and plastics—products that are critical to both industrial activity and everyday consumer demand.

Beyond taxation rates, UMA emphasized the need for a more enabling tax administration framework. The Association called for reforms to the tax appeals process to enhance efficiency and fairness, as well as adjustments to PAYE and VAT thresholds to improve employee purchasing power and stimulate consumption. A review of VAT registration thresholds was also proposed to ease compliance pressures on small and growing enterprises.

These recommendations are aligned with Uganda’s broader industrialization agenda and the implementation of the country’s 10-fold growth strategy. UMA underscored the importance of striking a balance between revenue generation and fostering a competitive business environment, both locally and regionally.

The ongoing dialogue marks a critical moment of collaboration between the private sector and policymakers, with a shared objective of building a resilient, inclusive, and growth-oriented economy.