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Government Tables Supplementary Appropriation Bill 2025 and Tax Reforms for Enhanced Revenue Collection

The Government has presented the Supplementary Appropriation Bill, 2025, to Parliament, seeking to allocate up to Shs4.8 trillion to key priorities, including defence, security, and infrastructure.

The Minister of State for Finance, Planning, and Economic Development (General Duties), Henry Musasizi, tabled the Bill on behalf of the Government during a plenary sitting chaired by Deputy Speaker Thomas Tayebwa on Thursday, 27 March 2025.

  • State House: Shs374 billion for recurrent expenditures
  • Ministry of Defence: Shs189 billion
  • Security: Shs137 billion
  • Foreign Missions: Shs16 billion
  • National Council of Sports: Shs152 billion
  • National Identity and Registration Authority (NIRA): Shs208 billion for identity card upgrades
  • Local Governments: Shs1.2 trillion
  • Ministry of Energy: Shs246 billion
  • Kampala Capital City Authority (KCCA): Shs60 billion

Alongside the Supplementary Appropriation Bill, the Minister has also tabled several critical tax bills aimed at improving revenue collection and streamlining tax administration. These include the Tax Procedures Code (Amendment) Bill, 2025, the Excise Duty (Amendment) (No.2) Bill, 2025, and the Supplementary Appropriation Bill, 2025.

The Excise Duty (Amendment) (No.2) Bill, 2025 introduces revised tax rates for various goods and services, including:

  • Cigarettes: Shs65,000 per 1,000 sticks for locally manufactured soft cap cigarettes and Shs150,000 for imported brands
  • Motor Fuel: Shs1,650 per litre for gasoline and Shs1,380 per litre for diesel
  • Plastic Products: 2.5% duty or US$70 per tonne, whichever is higher

A notable provision in this bill allows businesses to recover excise duty on damaged, expired, or obsolete goods.

Meanwhile, the Tax Procedures Code (Amendment) Bill, 2025 aims to strengthen tax administration through stricter compliance measures and improved enforcement, with the goal of reducing tax evasion and ensuring fair contributions from all taxpayers to national development.

Deputy Speaker Tayebwa referred the bills to the Budget and Finance Committees for further scrutiny. The Committee on the Budget is expected to report back to Parliament on the Supplementary Appropria

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