The Kampala City Traders Association (KACITA Uganda) has expressed concern over proposed tax amendments, warning that they could further strain an already struggling economy.
The proposed Tax Amendment Bills for the 2026/2027 financial year include a 10% withholding tax on telecom and digital agents, a 0.5% Alternative Minimum Tax (AMT), and a 6% withholding tax on entertainers and non-business assets.
Addressing the media at the KACITA Uganda offices on Monday, Acting Chairperson Isa Ssekito said the measures risk reducing incomes, penalizing struggling businesses, and negatively affecting young people in the creative industry.
Ssekito noted that the association has already submitted a memorandum to Parliament outlining its concerns regarding the proposed tax changes.
While acknowledging government efforts to boost revenue collection, he said the timing is unfavorable given the current economic hardships facing many traders.
KACITA also opposed the proposed increase in surcharge on used clothing from 15% to 30%, arguing that it would effectively double the tax burden and further impact livelihoods dependent on the sector.
The association called for a more balanced tax policy that supports business sustainability and promotes sector recovery amid ongoing economic pressures.
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