Minister Musasizi outlined the stringent penalties for non-compliance, saying an operator of a casino, gaming or betting activity who does not use or is not integrated with the gaming and betting centralised payments gateway system is liable to pay a penal tax equivalent to double the gaming or withholding tax due or five thousand five hundred currency points, whichever is higher.
The Ministry of Finance has unveiled a series of significant tax reforms, with a particular focus on the casino, sports betting, and gaming industries.
Among the proposals tabled in four new Tax Bills is a move to impose a substantial fine on operators who fail to utilize an integrated payment system managed by the Bank of Uganda.
The proposal, contained within the Tax Procedures Code Amendment Bill 2025, was presented to Parliament by Henry Musasizi, the State Minister for Finance, during today's plenary sitting.
The government is seeking to empower the Bank of Uganda to oversee a centralized system for all payments related to wins and stakes within the betting and casino sectors.
Minister Musasizi outlined the stringent penalties for non-compliance, stating, "An operator of a casino, gaming or betting activity who does not use or is not integrated with the gaming and betting centralised payments gateway system is liable to pay a penal tax equivalent to double the gaming or withholding tax due or five thousand five hundred currency points, whichever is higher."
This indicates a significant financial disincentive for operators who do not adhere to the new payment regulations.
Further clarifying the requirements, Minister Musasizi added, "An operator of a casino, gaming or betting activity shall only receive a wager or money staked and only make payouts through the gaming and betting centralised payments gateway system licensed by the Bank of Uganda under the National Payment Systems Act. (2) The gaming and betting centralised payments gateway system shall be linked to the Uganda Revenue Authority electronic notice system."
This highlights the government's intention to create a transparent and closely monitored payment system within these industries.
Beyond the specific measures targeting casinos and betting companies, the Ministry of Finance has also introduced broader tax reforms.
These include a proposal to utilize the National Identification Number (NIN) issued by the National Identification and Registration Authority (NIRA) as the primary Tax Identification Number (TIN).
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Minister Musasizi explained the rationale behind this move, noting, "(1) For tax purposes, the following shall be used as tax identification numbers. (a) a national identification number issued by the National Identification Registration Authority under the Registration of Persons Act, in the case of an individual; (b) a registration number issued by the Uganda Registration Services Bureau, in the case of a person who is a nonindividual: and (c) a tax identification number issued by a foreign tax authority with whom Uganda has a tax treaty or agreement for the exchange of information."
This aims to streamline tax administration and leverage existing national identification infrastructure.
In a move that could provide relief to some taxpayers, the government is also proposing a waiver on interest and penalties for outstanding principal tax payments.
Minister Musasizi highlighted, "Any interest and penalty outstanding as at 30th June 2024 shall be waived where the taxpayer pays the principal tax by 30th June, 2026.
"Where the taxpayer pays part of the principal tax outstanding as at 30th June,2024 by 30th June 2026, the payment of interest and penalty shall be waived at a pro-rata basis."
Furthermore, the Tax Bills also include a proposal to extend the tax exemption for Bujagali Electricity Limited up to 2032.
The four Tax Bills tabled today - the Tax Procedures Code (Amendment Bill) 2025, the Income Tax Bill 2025, the Hides and Skins (Export Duty) (Amendment) Bill 2025, and the Value Added Tax Amendment Bill 2025 - are now before Parliament for debate and potential amendments.
The proposed measures targeting the gaming and betting sectors are expected to be a key area of discussion, given the significant financial implications for industry players.
