By Sulaiman Kauki
PARLIAMENT. President Museveni has returned two tax amendment bills to Parliament for reconsideration.
This came after he objected to a proposed tax exemption for casino winnings and a sharp increase in excise duty on single-use plastics.
Deputy Speaker Mr Thomas Tayebwa informed legislators on Tuesday that the President had declined to assent to the Income Tax (Amendment) Bill, 2026, and the Excise Duty (Amendment) Bill, 2026, both of which Parliament passed in April.
According to Mr Tayebwa, Museveni wants Parliament to recommit Clause 11 of the Income Tax Bill, which exempts land-based casinos from withholding tax on payments made to winners.
The President also rejected provisions in the Excise Duty (Amendment) Bill that would raise excise duty on single-use plastics from 2.5 percent to 25 percent.
Mr Museveni said the proposed increase could have a significant impact on production, investment and employment in the plastics manufacturing sector and should be subjected to further policy study before implementation.
“The proposal would significantly affect production, investment and employment in the sector and thus requires further study as a policy measure of advancing environmental protection,” Parliament quoted the President as saying.
Under Uganda’s Constitution, the President may return a bill to Parliament with recommendations for reconsideration instead of signing it into law.
Parliament can amend the legislation in line with those recommendations or, in some circumstances, reconsider and pass it again.
The decision delays implementation of the two tax measures, which form part of the government’s broader revenue proposals for the 2026/27 financial year.
The proposed casino provision had sought to remove withholding tax on winnings paid by land-based casinos, while the plastics amendment was intended to strengthen environmental protection by discouraging the production and use of single-use plastic products through higher taxation.
Parliament is expected to reconsider the contested provisions before resubmitting the bills to the President for assent