President Yoweri Museveni refused to sign two tax bills, arguing that some provisions could distort competition, encourage tax avoidance and hurt Uganda’s economy
He opposed unequal tax treatment for betting operators and land-based casinos, as well as a sharp increase in the tax on single-use plastics
Parliament must reconsider the measures as Uganda seeks to raise tax revenue without undermining its fast-growing gambling industry or a plastics value chain supporting about 350,000 people
Ugandan President Yoweri Museveni has returned the Income Tax Amendment Bill, 2026, and the Excise Duty Amendment Bill, 2026, to Parliament, declining to sign either into law.
Parliament disclosed the decision in a statement issued on July 14. According to the statement, Museveni said some provisions in the two bills would create unfair competition among businesses, encourage tax avoidance and negatively affect the economy.
Regarding the income tax bill, Museveni objected to a provision introducing a withholding tax on gambling and betting winnings while exempting licensed land-based casinos. He said the difference in tax treatment would distort competition among operators and open avenues for tax avoidance, potentially reducing government revenue.
In the excise duty bill, the president opposed a proposed increase in the tax on single-use plastics from 2.5% or $70 per metric ton to 25% or $1,500 per metric ton, whichever is higher. While acknowledging the measure’s environmental rationale, he said the increase was excessive and could raise production costs, discourage investment, threaten jobs and hurt manufacturers that currently lack commercially viable alternatives to single-use plastics. Museveni asked Parliament to reconsider the provisions.
High Stakes for Gambling, Plastics and Tax Revenue
The presidential veto comes as Uganda’s gambling industry undergoes significant change. According to the National Lotteries and Gaming Regulatory Board, gambling turnover reached nearly 8 trillion Ugandan shillings, about $2.17 billion, in the 2025/2026 financial year, up from 500 billion shillings in 2021/2022.
The proposed tax increase is equally contentious for Uganda’s plastics industry. According to an article published in June 2026 by the government information platform The Gouv, Uganda imported nearly 497,000 metric tons of plastics in 2024, of which only 105,000 metric tons were recycled, equivalent to a recycling rate of about 21.2%. The plastic waste collection, transportation and processing chain supports about 350,000 people.
Museveni’s intervention comes as the government seeks to increase domestic revenue collection. Tax revenue is projected at 40.16 trillion Ugandan shillings for the 2026/2027 financial year, accounting for most of the 44.18 trillion shillings in projected domestic revenue. The government aims to raise the tax-to-GDP ratio from about 13% currently to 15.5%.
Excise duties on products and activities such as fuel, tobacco, alcohol, gambling and plastics form a key part of the government’s efforts to boost domestic revenue.
Charlène N’dimon
