On June 12th , 2025, Uganda’s Finance Minister, Matia Kasaija, took center stage to unveil budget for FY 2025/2026 .
Ugandan youth were granted groundbreaking three-year income tax holiday during the budget reading.
The tax holiday announced by Uganda’s government targets startups established after July 1, 2025, offering a 3-year income tax exemption,
The Ministry of Finance Planning and Economic Development unveiled Shs72.136 trillion national budget for the 2025/2026 financial year
This initiative originates from 2022 petition by the National Youth Council, advocating for a two-year tax relief.
According to the 2024 Uganda Bureau of Statistics, 78% of the population belongs to the Youth Category.
The country is also known for innovative Youth with great ideas but lack of support especially financially makes their ideas perish.
The tax holiday aims to nurture entrepreneurship, support local enterprises, and boost economic growth by reducing financial burdens on start ups.
To qualify for tax break, start-ups need to be entirely Ugandan-owned and must involve investments of at least Shs300 million.
This tax break promises a brighter future for Uganda’s youth-led economy, but its impact hinges beyond the policy itself.
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