GOVT PROPOSES NATIONAL ID AS TAX ID

NILE POST

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).

The proposals, unveiled by Minister of State for Finance Henry Musasizi, seek to streamline tax collection, enhance taxpayer identification, and reduce tax evasion.

"We are proposing to use the National Identification Number as a Tax Identification Number to enhance taxpayer identification and reduce tax evasion," Musasizi explained.

The four bills—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 expected to support the country’s energy sector and spur economic growth.

Additionally, 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 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 intensifying efforts to boost revenue collection and expand the tax base.

The bills will now be scrutinized by Parliament before being enacted into law.