Proposed Import Duty Reduction and Waiver Opportunities for Financial Year 2026/2027

Background

The Uganda Revenue Authority, through the office of the Commissioner Customs and under the powers enshrined in Section 140 of the East African Community Customs Management Act, 2004 (EACCMA), has in collaboration with the Uganda Manufacturers' Association invited manufacturers and stakeholders to submit expressions of interest for inclusion of industrial inputs and raw materials under the duty remission (reduction and waiver) scheme for the Financial Year 2026/2027.

The proposed remission scheme contains a wide range of country-specific and regional duty remissions aimed at reducing production costs and enhancing local manufacturing competitiveness.

Key Highlights

1. Continued support for local manufacturing. The proposed remission opportunities cover several sectors including food and beverage manufacturing, packaging materials, pharmaceuticals, textiles and garments, footwear manufacturing, furniture manufacturing, electrical and electronic assembly, metal fabrication, construction materials, and automotive and motorcycle assembly.

2. Duty rates reduced to 0% on several industrial inputs. A significant number of raw materials and production inputs are to attract a reduced import duty rate, some being subjected to a preferential import duty rate of zero percent (0%), including inputs for: smart electricity meters, motorcycle components, leather and footwear manufacturing, specialised pipes, welding electrodes, kitchenware production, lubricants, packaging materials, energy-saving stoves, toothbrushes, roofing tiles, and electronic assembly (TVs, speakers, blenders, kettles, cookers, etc.).

3. Sector-specific incentives. The scheme also includes dedicated remission lists for specific sectors, including textile manufacturers (covering a broad range of yarns, fabrics, threads, accessories and inputs) and footwear manufacturers (covering components such as hinges, lock sets, castors, frames and fittings).

4. Regional remissions. Additionally, East African Community (EAC) regional remissions are proposed for mobile phone assembly, transformers and switch gears, paper and paperboard manufacturing, sanitary products, agricultural equipment, exercise books and textbooks, deep cycle and dry cell batteries, and industrial sugar and other manufacturing inputs.

What Businesses Should Do

Manufacturers should review the proposed remission schedules and assess whether their imported raw materials or production inputs qualify for preferential duty treatment. Businesses that may benefit should engage with URA to ensure that their inputs are considered during the FY 2026/2027 remission approval process.

Customs duty remissions are typically granted for a financial year period of twelve months from the publication of the Gazette. All intending manufacturers should therefore write to URA by 19 June 2026 if they are to be considered for the first Gazette to be issued in July 2026.

Impact

If approved, the proposed remissions are expected to lower costs on qualifying industrial inputs, improve the competitiveness of locally manufactured products, and support industrial growth in Uganda.

Our team is available to assist with reviewing product classifications, assessing eligibility for remission, and supporting applications under the FY 2026/2027 duty remission framework.

Download the full alert below for the detailed sector lists and contact details for our Tax team.

Prepared by TASLAF Advocates — Tax Practice.