On the sidelines of the EY Breakfast Forum FY 2025/26 held at the Sheraton Hotel in Kampala, Mr. Robert Mbaziira, Senior Tax Manager at Ernst & Young Uganda, shed light on significant developments in Uganda’s tax administration and budget priorities. Central to the conversation was the government’s enforcement of the Tax Identification Number (TIN) policy, effective from July 1, which mandates every Ugandan, including those in rural areas, to register for tax.
Mbaziira highlighted the expansive nature of this policy, emphasizing that “every Ugandan, however, if you are in the village, will now pay the tax rally.” This broad inclusion means the tax register will encompass a large portion of the population, including many not traditionally part of the money economy. He explained, “We’re seeing that 33% of Ugandans are not in the money economy, and while they will be on the tax register through their national IDs, many will not contribute revenue, creating administrative complexity.” This broad registration effort entails additional administrative work but aims to improve accountability and revenue collection across all sectors.
However, the expansion of tax registration raises concerns about the practicalities of enforcement, particularly among informal traders. Many of these traders operate in groups, Mbaziira explained: “Most of our relatives, most of the traders, have been coming together as one, probably, in groups,” often pooling goods but registering as one business. This grouping means that while some traders might not individually qualify for TIN registration, they get covered under a collective registration. Moving forward, the government may need to “disaggregate and see who qualifies for registration,” ensuring a fair and efficient tax system.
One of the key benefits Mbaziira noted is the government’s approach to accountability at the grassroots level. He pointed out Hon. Matia Kasaija’s emphasis on parish-level accountability. “The Minister of Finance, Planning, and Economic Development, Hon. Kasaija, highlighted that the parish chief at every parish will have to report about the performance of the parish economy,” indicating that Uganda is moving towards tracking economic activities from micro to macro levels. This initiative aims to stabilize the economy by promoting transparency, enhancing economic visibility, and fostering local economic development from the grassroots level.
Turning to the recent national budget reading, Mbaziira noted the government’s strong focus on agriculture, which remains the backbone of Uganda’s economy. “Agriculture contributes over 60% of Ugandans’ livelihoods,” he said, emphasizing why the sector received significant attention in the budget allocations. Despite challenges posed by COVID-19 and other disruptions, the government prioritized funding agricultural initiatives, recognizing that a majority of Ugandans depend on farming for their income and sustenance.
Mbaziira concluded by reminding that while these changes may increase compliance obligations, they are part of a broader effort to create a more accountable and inclusive economic environment. The government’s recent budget and tax reforms reflect its commitment to stabilizing Uganda’s economy, supporting key sectors, and enhancing fiscal transparency from the grassroots level to national structures.
