In a bid to raise money to cover borrowed funds, the Ugandan government has introduced four tax bills aimed at reforming the country’s tax regime, including a proposal to use the National Identification Number (NIN) as a Tax Identification Number (TIN).
“We are proposing to use the National Identification Number as a Tax Identification Number to enhance taxpayer identification and reduce tax evasion,” Minister of State for Finance Henry Musasizi, explaining the proposals, unveiled them to streamline tax collection, enhance taxpayer identification, and reduce tax evasion.
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The four bills are; Tax Procedures Code (Amendment) Bill 2025, Income Tax Bill 2025, Hides and Skins (Export Duty) (Amendment) Bill 2025, and Value Added Tax (Amendment) Bill 2025—aim to improve tax administration, compliance, and revenue collection.
Among the key proposals is the extension of the tax exemption for Bujagali Electricity Limited until 2032, a move to subsidise “investors”, in a country that already has surplus electricity production.
Operationally, a new clause is set to be introduced in Section 47B of the Tax Procedures Code Act, granting a waiver on interest and penalties for taxpayers who clear their principal tax obligations.
“Any interest and penalty outstanding as of 30th June 2024 shall be waived where the taxpayer pays the principal tax by 30th June 2026,” the proposal states.
The waiver is allegedly designed to encourage taxpayers to settle outstanding liabilities, promoting compliance and reducing tax disputes.
The proposed tax reforms come at a time when the government is choking on loans and seeking to boost revenue collection and expand the tax base.
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