A significant development for Ugandan gambling saw President Yoweri Museveni block a bid by Uganda’s Parliament to approve two fiscal policies, the Income Tax (Amendment) Bill 2026 and the Excise Duty (Amendment) Bill 2026.

Museveni issued urgent warnings over the risk of unfairness and tax evasion avenues that could be created as a result of the new framework. 

Speaking during a 12th parliamentary house sitting yesterday, Deputy Speaker Thomas Tayebwa, who led proceedings, stated President Museveni had objected to certain clauses of the proposed bills, particularly as it concerns withholding tax on betting winnings and an included provision which saw a sharp increase in excise duty on single-use plastics.

The two bills were earlier considered and passed by the 11th parliament meeting ahead of the budget reading and the new financial year, which starts in July 2026.

Finance Minister Matia Kasaija had presented the Lotteries and Gaming (Amendment) Act 2026 to the country’s parliament, which, if implemented, would bring tax on betting gross gaming revenue in line with casino GGR at 30%.

If sanctioned, the proposed tax structure could have placed Uganda in the highest tax rates in the region. 

“The President is against the passing into law of Clause 11 of the Income Tax Amendment Bill, 2026,” Tayebwa was quoted as saying. 

The disputed clause was said to be fraught with discrepancies as its introduction was pursued to introduce a withholding tax that increases the financial burden on players, from the winnings of their betting activities. However, there was an inserted exemption for winnings obtained from land-based casinos licensed under the Lotteries and Gaming Act, 2016.

Thus, Museveni warned that such an exemption was bound to create unfair competition amongst operators while raising the chances of tax evasion. 

“The exemption creates opportunities for tax avoidance and revenue leakage. There is no justification for exempting one category while taxing the other”, he argued. MPs suggested returning the disapproved bills through a fresh legislative process, arguing that the President might have delayed beyond the constitutional timeline before the rebuffs. 

“The law assumes that the 11th Parliament that was handling these bills was dissolved and the matter was overtaken by events”, Bbaale county MP, Hon. Charles Tebandeke quipped. 

However, Speaker Tayebwa rejected his claim, reminding legislators that the constitution allows the presidency to either assent to a bill or return it to parliament within 30 days of receiving it.

Tayebwa insisted: “The constitution is very clear, 30 days from the date it is presented to him or her.”

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