Uganda photovoltaic module export tariff

USEA intends to bridge this communication gap by developing a handbook for solar taxation in Uganda for all stakeholders including customs officials, importers, shipping and clearing agents as a reference resource on off-grid products, parts and accessories.

Combined, these taxes effectively charge a 33% tax on all foreign goods and services. Imports are also charged a 1.5% infrastructure tax to finance railway infrastructure development. Uganda also recently passed a five percent Digital Services Tax (DST) on non-resident foreign businesses, effective retroactively from July 1, 2023.

The lack of clarity in import regulations, customs and tax policy has led to continual delays in importation for companies and has contributed to unhelpful misunderstandings between solar energy players and tax and customs authorities.

Uganda also recently passed a five percent Digital Services Tax (DST) on non-resident foreign businesses, effective retroactively from July 1, 2023. The five percent tax in on gross revenue and requires foreign companies to file a tax return with the Uganda Revenue Authority on a quarterly basis.

The EAC agreement increased import duties on some products (e.g., chocolate, tomato sauce, mineral water, and processed meat, among others) that Uganda currently imports from the United States.

However, the off-grid solar industry has been continually hampered by inconsistent interpretation and application in fiscal policy incentives and lack of support for the sector, both within individual countries and across the region.