Parliament backs President on plastics tax, casino levy

What the report says

Parliament has approved President Yoweri Museveni’s recommendations on two tax bills, according to Watchdog Uganda, after the measures were sent back for reconsideration. The decision affects the Excise Duty (Amendment) Bill, 2026 and the Income Tax (Amendment) Bill, 2026, with the debate centered on plastics taxation and gaming revenue.

On plastics, lawmakers kept the excise duty on single-use plastics at 2.5 percent, or US$70 per tonne, rather than moving to the higher rate earlier passed by Parliament. The Finance Committee said the increase should wait until a fuller study is done on the industry’s impact, while also supporting broader coverage of single-use plastics and continued exemptions for items such as multiple-use plastics, sanitary pad packaging, vacuum food packaging and pharmaceutical products. Some MPs objected, arguing Parliament should not revisit bills passed by the dissolved 11th Parliament and warning about possible revenue losses.

In the separate income tax bill, Parliament removed a withholding tax exemption for winnings from land-based casinos while keeping the exemption for the national lottery. The committee said the casino exemption could create loopholes and unequal treatment across gaming operators. Finance Minister Henry Musasizi backed the President’s approach, and the House adopted the majority reports despite dissenting views. The outcome leaves the lower plastics levy in place and subjects casino winnings to withholding tax, reflecting an effort to balance revenue collection, industry concerns and tax policy consistency.