As Uganda seeks to raise an additional Shs4.8 trillion in revenue through new tax measures in the 2026/27 financial year, debate is growing over who will bear the greatest burden of the reforms.
While government has presented the amendments as necessary for strengthening domestic revenue mobilisation, gender advocates argue that some of the proposed taxes could have unintended consequences for women, particularly those working in the informal economy.
A recent report by the Forum for Women in Democracy (Fowade), Shaping an Equal Future, notes that although some reforms are progressive, others risk widening existing economic disparities.
At the centre of the debate is government’s continued reliance on indirect taxation. Proposed levies on fuel are expected to generate significant revenue, but advocates say they will also increase the cost of everyday economic activity.
Women are particularly exposed to such changes because they make up a large share of workers in the informal sector and are more likely to depend on small-scale trading, public transport and mobile money transactions.
Fowade says higher fuel costs are likely to raise transport expenses for market vendors, caregivers, and women accessing healthcare and education services.
The report also draws attention to unpaid care work. Across Uganda, women spend several hours each day caring for children, preparing meals, collecting water, and performing other household responsibilities.
Rising costs of fuel and basic commodities can make these tasks more expensive and time-consuming, yet advocates say the tax proposals do little to support services such as affordable childcare, clean energy, and water infrastructure.
Another concern relates to government tax incentives for large corporations. Fowade,argues that extending tax holidays reduces resources that could otherwise be directed towards public services.
The report cites the extension of tax incentives for Bujagali Power as an example of revenue that could potentially support healthcare, education, and social protection programmes.
Not all the proposed reforms have attracted criticism, however. The increase in the Pay as You Earn (PAYE) threshold from Shs235,000 to Shs355,000 has been welcomed as a measure that will leave more disposable income in the hands of lower-income workers.
Likewise, the decision to raise the Value Added Tax (VAT) registration threshold from Shs150m to Shs250m, effective July 1, 2026, is expected to ease compliance costs for small businesses while improving tax administration.
PwC’s associate director for tax services, Juliet Najjinda Mutabaazi, says the adjustment reflects the fact that many VAT-registered small businesses contribute little to overall VAT collections while continuing to bear compliance costs.
Businesses with an annual turnover below Shs250m will be eligible to deregister from VAT and avoid monthly filing requirements.
However, some may choose to remain registered to claim input VAT on purchases and investments. Mutabaazi also notes that deregistration does not remove the requirement to issue electronic receipts through EFRIS.
The discussion around taxation has also reopened broader questions about gender-responsive budgeting and public service delivery.
Livingstone Ssewanyana, executive director of the Foundation for Human Rights Initiative, says the success of gender-inclusive budgeting should be assessed through the quality and accessibility of public services.
He argues that persistent shortcomings in service delivery undermine the effectiveness of budget allocations, regardless of the intentions behind them.
The debate has also highlighted concerns about issues that remain inadequately funded despite repeated advocacy.
Sarah Bireete, executive director of the Centre for Constitutional Governance, points to the continued absence of dedicated funding for sanitary pads for vulnerable schoolgirls, arguing that the issue continues to affect girls’ education outcomes.
She also maintains that pay disparities among teachers in government schools remain unresolved.