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By Spy Uganda
President Yoweri Kaguta Museveni has declined to assent to two major fiscal proposals passed by Parliament, citing concerns that some amendments could create unfair tax treatment, encourage revenue losses and hurt investment and employment.
The President returned the Income Tax (Amendment) Bill, 2026 and the Excise Duty (Amendment) Bill, 2026 to Parliament with reservations, Deputy Speaker Thomas Tayebwa informed legislators during Tuesday’s plenary sitting.
The two bills had introduced changes to Uganda’s tax framework, but the President raised objections to specific provisions that he said required further review before becoming law.
In the Income Tax (Amendment) Bill, 2026, President Museveni rejected Parliament’s amendment to Clause 11, which sought to exempt winnings from land-based casinos licensed under the Lotteries and Gaming Act from a proposed 15 percent withholding tax on betting and gaming winnings.
The President argued that the exemption could create loopholes for tax avoidance and lead to revenue leakage by allowing similar gaming activities to be treated differently depending on the platform used.
“The exemption creates opportunities for tax avoidance and revenue leakage,” Museveni stated in his reservations, arguing that land-based casinos and online gaming operators engage in substantially similar activities and should not receive different tax treatment.
The gaming sector had earlier opposed the withholding tax proposal, with operators arguing that applying it to casino players would be difficult to administer and could negatively affect the industry.
Chairman of the Uganda Gaming Operators Association, Bob Kabonero, told Parliament’s Finance Committee in April 2026 that real-time withholding on land-based casino winnings would be impractical and could undermine revenue collection.
On the Excise Duty (Amendment) Bill, 2026, the President objected to a proposed sharp increase in taxes on single-use plastics, warning that the measure could have unintended consequences for manufacturers and consumers.
Parliament had increased the duty on single-use plastics from 2.5 percent or $70 per tonne (whichever is higher) to 25 percent or $1,500 per tonne.
Museveni said the proposed increase required more study, noting that it could increase production costs and affect investment and jobs in the plastics sector.
“The proposed increase is substantial and is likely to impose significant cost pressures on manufacturers engaged in the production and use of single-use plastics,” the President said.
He added that Uganda still lacks readily available alternatives to plastic packaging, making it necessary to balance environmental protection with economic realities.
The matter sparked procedural debate in Parliament, with Bbale County MP Charles Tebandeke questioning whether the bills, which originated from the previous Parliament, required fresh consideration by the current House.
Deputy Speaker Tayebwa rejected claims that the President had failed to meet constitutional timelines, directing that remarks suggesting a breach of Article 91 of the Constitution be removed from the record.
“The Constitution is very clear, 30 days from the date it is presented to him or her. I know the President responded within 30 days as the Presiding Officer,” Tayebwa said.
Under Article 91 of the Constitution, the President may assent to a bill, return it to Parliament for reconsideration, or decline assent within 30 days.
The Finance Committee has now been tasked with reviewing the President’s concerns and proposing adjustments before the bills are returned for further consideration.
The review comes as government continues to balance the need to raise domestic revenue with concerns from businesses and investors over the impact of new tax measures on economic growth.
, https://www.spyuganda.com/museveni-rejects-new-gaming-plastic-taxes-flags-loopholes-economic-risks/
