Africa-Press – Uganda. State Minister of Finance Henry Musasizi has dismissed concerns that government taxation policies are hurting businesses, insisting that Uganda’s economy is growing steadily and remains on a positive trajectory.
Speaking at Butuurwa Church of Uganda in Nyamweru Sub-county, Rubanda District, Musasizi said the economy is expanding at a rate of 7 percent annually—a growth he attributed to the government’s strategic planning and effective policy implementation.
“This growth is brought about by government’s strategic planning and implementation of policies,” Musasizi said.
The minister cited the existence of over 28,000 factories across the country as evidence that the business environment remains vibrant and conducive to investment.
Responding to complaints about taxation, Musasizi said the government exercises caution when introducing new taxes, taking into account the type of business, the method of collection, and the potential impact on economic activity.
“It’s not true that taxes have weakened businesses. We take a lot of care while deciding what kind of taxes to introduce, which businesses to target, and how to collect them,” he explained.
He further emphasised that several exemptions have been made to support critical sectors.
For instance, companies producing scholastic materials such as books and those manufacturing medical supplies are exempt from Value Added Tax (VAT).
“The plan is to always ensure that we don’t hurt businesses. For example, we don’t charge VAT on companies making scholastic materials like books, or on those producing medical supplies,” he added.
Musasizi said these exemptions reflect the government’s commitment to creating a business-friendly environment while supporting essential services like education and healthcare.
By addressing these concerns, the minister sought to reassure the public and the business community that government tax policies are designed not to stifle enterprise but to foster long-term economic growth.
His comments come at a time when some business owners and analysts have raised fears that excessive taxation could dampen investment and reduce competitiveness.
Musasizi’s remarks are expected to boost investor confidence, especially in sectors receiving targeted tax relief, and to reinforce the government’s message that it is focused on both revenue generation and private sector development.
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