- Key Tax Proposals: The Ugandan Parliament is evaluating several draft tax bills aimed at the 2025 budget, which include extending the tax exemption for the Bujagali hydropower project until June 30, 2032, and adjusting the taxation of digital services provided by non-residents.
- Support for Start-Ups and Anti-Avoidance Measures: The proposed measures include a three-year income tax exemption for new start-up businesses owned by Ugandan citizens with investment capital up to UGX 500 million, as well as an anti-fragmentation rule to prevent VAT registration avoidance on imported goods.
- VAT Adjustments and New Levies: Additional proposals feature VAT exemptions for certain renewable energy products and textiles, zero-rating for aircraft supplies, and the introduction of a 1.5% infrastructure levy and a 1% import declaration fee on goods imported for home use, set to take effect on July 1, 2025, pending approval.
Source Orbitax
