(Kampala) – Uganda’s government has announced plans to review and harmonize taxes on the hospitality sector, responding to industry concerns over multiple tax obligations that many business owners say hinder growth rather than promote it.
The Assistant Commissioner for Tourism Development, Jimmy Andrew Kigozi, shared these plans on November 8 during the 10th-anniversary celebration of Nican Resort Hotel in Kampala. According to Kigozi, the proposed tax review seeks to address issues raised by hotel proprietors regarding the numerous taxes and licenses that impact the industry.
Acknowledging the challenges, Kigozi noted that the hospitality sector is subject to several licenses, including those for swimming pools, bars, liquor, and various other services. He indicated that the Ministry of Tourism, Wildlife and Antiquities is working alongside the Ministry of Finance to streamline these requirements, aiming to reduce the tax burden on hotel operators.
To support the industry, Kigozi highlighted an existing policy allowing for a 100 percent tax exemption on imported hotel equipment. This exemption, he noted, has already benefited many hoteliers, particularly those importing specialized tourism vehicles and hotel supplies. However, Kigozi emphasized that equipment must be well-marked to ensure they are used exclusively within the hospitality sector, preventing misuse in non-tourism markets such as Kikuubo.
Nican Resort Hotel’s proprietor, Nixon Kakeeto, voiced additional concerns, stressing that the government should further support local tourism through awareness campaigns. While Kakeeto acknowledged some improvements, he urged for greater involvement in educating the public on the importance of supporting the domestic tourism sector. Reflecting on the resort’s journey since its establishment in 2014, Kakeeto described a decade of perseverance in a challenging business environment.
Buganda Kingdom’s Minister for Sports, Youth, and Arts, Robert Sserwanga, also addressed the event, emphasizing the need for a supportive framework for the hospitality industry. He highlighted that hotels near cultural and historical sites, such as Nican Resort’s proximity to Naggalabi—the coronation site of Buganda kings—stand to benefit from policies that create a favorable business environment.
Sserwanga urged the government to consider the strategic importance of Uganda’s hotels in promoting tourism, not only as accommodations but as integral to the visitor experience, particularly for tourists exploring the country’s unique cultural sites.
| Government Proposal | Details |
|---|---|
| Tax Harmonization | Review and align multiple licenses |
| Equipment Tax Exemption | 100% tax exemption on imports |
| Local Tourism Sensitization Request | Calls for government support |
| Strategic Location Example | Nican Resort near Naggalabi |
The proposal, aimed at improving the hospitality business climate, seeks to both ease tax burdens and foster growth in Uganda’s tourism sector by making the country more attractive to investors and tourists alike.