Finance Ministry Proposes 10% Tax Increase in Gaming and Lotteries.

The Ministry of Finance has proposed an increase in the tax rate on gaming activities from 20 percent to 30 percent as part of the Lotteries and Gaming (Amendment) Bill, 2023.

The proposed amendments seek to amend several provisions under the Lotteries and Gaming Act, 2016.

The Bill is currently under consideration by Parliament, and stakeholders and interested parties have been invited to submit their views to the Parliamentary Committee on Finance, Planning and Economic Development.

The proposed Bill is expected to have a significant impact on the gaming industry in Uganda, which has seen rapid expansion in recent years, driven by the popularity of sports betting and online gambling.

While some critics argue that the gaming industry has negative social and economic consequences, proponents of the tax increase argue that it will provide additional funds for social programs and initiatives. However, some stakeholders are concerned that the increase may discourage investment in the industry, which is expected to continue to expand due to increased access to mobile technology and rising disposable income levels in the country.

In Uganda, the gaming industry has experienced significant growth in recent times, and this can be partly attributed to the increased interest in sports betting and online gambling. As per the annual revenue performance report for the 2021/22 fiscal year from the Uganda Revenue Authority (URA), tax collected from casinos exceeded expectations, resulting in a surplus. This surplus was due to an increase in revenue from the recovery of gaming tax arrears, which amounted to Shs35.65b.