Parliament has passed the Value Added Tax (Amendment) Bill, 2026, rejecting a proposal to exempt petrol stations from using the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).
The proposal, fronted by Budadiri West MP Nathan Nandala Mafabi, argued that fuel pumps cannot issue electronic receipts.
However, the government dismissed the claim, with the Ministry of Finance insisting that electronic receipts are already being issued at fuel stations.
State Minister for Finance Henry Musasizi said the bill is intended to streamline VAT collection, with the government projecting up to 353 billion shillings in additional revenue.
Parliament also approved an increase in the VAT registration threshold from 150 million to 300 million shillings.
Government had proposed 250 million, but lawmakers pushed for a higher figure, citing the need to support small businesses.
Meanwhile, legislators approved tax exemptions for United Nations-related and specialized agencies, including the Arab Bank for Economic Development in Africa and the Uganda Virus Research Institute.
Lawmakers also endorsed tax exemptions for supplies related to nuclear energy development.
In a related development, the government dropped its proposal to impose a 17 percent VAT on software, following concerns that such a move would undermine digital transformation efforts.
By Francis Lubega
21st April 2026
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