Museveni Enacts Nine Key Bills, Government Overhauls Financial Oversight

In a concerted effort to strengthen domestic revenue mobilisation, streamline tax procedures, and enhance fiscal discipline, President Yoweri Museveni has assented to nine crucial bills. These new laws, which include amendments to the Value Added Tax (VAT), Income Tax, and External Trade Acts, are set to take effect ahead of the 2025/26 financial year, marking a significant step in Uganda’s economic governance.

Concurrently, the Ministry of Finance, Planning and Economic Development has introduced revised guidelines for the issuance of Certificates of Financial Implications (CFIs). This move aims to enhance transparency and ensure greater accountability in public finance management, addressing concerns that have emerged over nearly a decade since the original guidelines were put in place.

Under Uganda’s legal and policy framework, all legislative and policy proposals submitted to Cabinet or Parliament are required to be accompanied by a CFI. This certificate, guided by the Public Finance Management Act (Cap 171), the Rules of Procedure of Parliament, and Cabinet Secretariat’s guidelines, outlines the potential financial impact of a bill on the economy. It is a mandatory prerequisite for all bills, whether government-sponsored or privately introduced, to ensure that government decisions are fiscally responsible, developmentally aligned, and supported by credible evidence.

Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, highlighted the necessity for the revised guidelines. He noted that an evaluation process had identified several concerns with the previous framework, including delays in CFI issuance due to insufficient information, inadequate capacity to assess the economic impact of proposals, and a lack of clarity on stakeholder roles.

Furthermore, there was no reliable database to track submissions from Ministries, Departments, and Agencies (MDAs). “The revised guidelines are therefore intended to address the concerns of the stakeholders,” Ggoobi stated.

The amendments introduce a robust framework for assessing the financial and socioeconomic implications of legislative and policy proposals. Key changes include:

• Comprehensive Review Process: The revised guidelines now mandate an assessment of budget impact, economic and distributional effects, and fiscal risks.
• Defined Lead Times: Clear timelines for the CFI process have been established to reduce delays.
• Strengthened Institutional Framework: The new guidelines introduce an institutional structure designed to improve consultations among relevant stakeholders and build necessary capacity.
• Mandatory Stakeholder Impact Assessments: All proposals must now identify and evaluate their impact on various social groups, including vulnerable populations, small and medium enterprises (SMEs), and regional communities. This ensures that policy decisions are not only fiscally sound but also socially inclusive.

The Ministry anticipates that these new guidelines will pave the way for the automation of business processes related to CFI preparation, review, and issuance, enabling better management of the large volumes of information generated.

To facilitate greater transparency and accountability for financial and economic implications across all levels of government, three new committees will be established:

• Regulatory Fiscal Assessment Committee at the MDA level: To ensure coordination and consultations in preparing submissions for CFIs and Letters of Financial Clearance.
• Regulatory Fiscal Assessment Committee within the Programme Working Group framework: To approve submissions from MDAs, a role that can be adopted by the Project Preparation Committee for the Programme Working Group. Regulatory Fiscal Assessment Committee at the Ministry of Finance, Planning and Economic Development: To consider Statements of Financial Implications from MDAs in line with the new guidelines.

“These reforms mark a significant milestone in Uganda’s journey towards more transparent, accountable, and evidence-based public financial management,” Ggoobi emphasised. The government believes these measures will ensure that policy, regulatory, and legislative proposals effectively manage resource allocations across programs, contributing to Uganda’s sustainable economic development.

Here are the assented Acts;

1. The Value Added Tax (Amendment) Act, 2025.
2. The Stamp Duty (Amendment) Act, 2025.
3. The Excise Duty (Amendment) (no.2) Act, 2025.
4. The Tax Procedures Code (Amendment) Act, 2025.
5. The Supplementary Appropriation Act, 2025.
6. The hides and skins (export duty).
7. The Income Tax (Amendment) (No. 2) Act, 2025
8. The External Trade (Amendment) Act, 2025.
9. ⁠The Appropriation Act, 2025.