TaxIntellilytics Stories

The dispatch book · File 001 · last verified 28 October 2026

TaxIntellilytics Stories · The Dispatch Book · taxintellilyticsstories.com/research/reform-tracker/TIL-REF-2026-001 · printed

File 001 · from World Bank · to MoFPED and Parliament

Raise the annual PIT tax-free threshold to UGX 4.02 million.

324days from recommendation to lawIncome Tax (Amendment) Act 2026, signed 20 Aug 2026

Evidence slip

Sent30.09.25ReviewedLaw20.08.26Done

From World Bank · to MoFPED (policy; presents tax bills) and Parliament (enactment) · PIT

“raising the PIT exemption threshold to UGX 4.02 million per annum”

press release

The desks

Sent30.09.25Improving revenue collection and public spending can acceler…
Reviewed
no evidence
Law20.08.26Income Tax (Amendment) Act 2026 (Act 21 of 2026)
Funded
no evidence
Under way
no evidence
Done
no evidence
Evaluated
no evidence

Sent, 30 September 2025. Recommended in Improving revenue collection and public spending can accelerate job creation and Uganda's economic growth (press release for the Uganda Economic Update, 25th edition) (press release).

Law, 20 August 2026. Income Tax (Amendment) Act 2026 raised the tax-free band of employment income to UGX 4.02 million a year, in force from 1 July 2026 (register: ITA-2026-PAYE, law verified).

The route slip

From finding to result, link by link

Each box is one link of the reform chain. ✓ documented; ? claimed but not documented; · no evidence yet, with what it needs. This file stops at: Outcome.

  1. FindingDocumentedThe World Bank estimates its PIT reform (threshold to UGX 4.02 million a year plus a 35% band) would raise nearly UGX 149 billion (0.1% of GDP) and improve equity.
  2. ProblemDocumentedThe PIT threshold had stayed at UGX 2.82 million a year since 2012.
  3. RecommendationClaimed, not documentedWorld Bank, 30 Sep 2025. HYPOTHESISED: that the 2026 Act followed this recommendation; the Budget Speech FY2026/27 does not cite it
  4. Legal powerDocumentedPFM Act 2015 s.8 (the Minister presents tax and revenue bills to Parliament); opened, PFMA-S8
  5. InstitutionNamedMoFPED (policy; presents tax bills) and Parliament (enactment)
  6. ActionDocumentedenacted in the Income Tax (Amendment) Act 2026, Sch. 4 Part 1 (register ITA-2026-PAYE)
  7. OutputDocumentedthe statutory threshold, UGX 4.02 million a year from 1 July 2026
  8. OutcomeNo evidence yetneeds PAYE collections and the number of employees below the threshold, before and after
  9. EvaluationNo evidence yetneeds an evaluation with a stated method

In the amendment register

Became law 324 days after this recommendation

Tax-free band of employment income raised to UGX 4.02 million a year

Income Tax (Amendment) Act 2026 · signed 20 August 2026 · in force 1 July 2026 · implementation: pending verification

Open the register's case file ITA-2026-PAYE →

Why it was recommended

Finding. The World Bank estimates its PIT reform (threshold to UGX 4.02 million a year plus a 35% band) would raise nearly UGX 149 billion (0.1% of GDP) and improve equity.

Problem. The PIT threshold had stayed at UGX 2.82 million a year since 2012.

Strength of the evidence behind it: high.

Note. The threshold matches the World Bank figure exactly. Became law after the recommendation; whether because of it is not documented.

Who has the power to act

MoFPED (policy; presents tax bills) and Parliament (enactment). Legal power checked: PFM Act 2015 s.8 (the Minister presents tax and revenue bills to Parliament); opened, PFMA-S8.

Sources