Uganda’s entertainment industry is pushing back after a proposal to increase taxes on performers sparked outrage among musicians and other creatives, who say the move could do more harm than good.Officials from the Institute of Certified Public Accountants of Uganda (ICPA-U) have asked government to raise the proposed withholding tax on public entertainers from 6 percent to at least 15 percent.The proposal, presented to Parliament, is part of broader efforts to expand the country’s tax base and formalise revenue collection within the creative sector.However, a section of Ugandan artistes has strongly rejected the idea, describing it as unrealistic and harmful to an already fragile industry.Leading the criticism is Phina Mugerwa, the general secretary of the Uganda Musicians Association (UMA). Popularly known as Phina Masanyalaze, she warned that increasing the withholding tax to 15 percent would cripple musicians who are already struggling to sustain their careers.According to Mugerwa, the proposal reflects a lack of understanding of how the entertainment industry operates. She revealed that artistes had previously engaged with the Uganda Revenue Authority (URA) to explain their income streams, making the renewed push for higher taxation both surprising and frustrating.We sat with URA and explained how the industry earns, so it is shocking that such a tax is being considered. You cannot start milking a cow you are not feeding. Mugerwa also pointed to alternative proposals previously submitted by industry players, including a request to amend the Private Copy Remuneration system. She suggested introducing a 1 percent levy on imported music-enabled devices such as smartphones and laptops, with proceeds directed into a consolidated fund to support creatives. That proposal, she noted, has not been acted upon.The tax debate is unfolding as lawmakers on Parliament’s Finance Committee scrutinise a series of tax Bills ahead of approving the national budget for the 2026/27 financial year, projected at Shs84.2 trillion, an increase from Shs72.1 trillion in the current fiscal period.Nina Roz criticizes government’s proposed 6% withholding tax on artists’ earningsUnder the government’s initial proposal, a 6 percent withholding tax on public entertainers is expected to raise about Shs4.2 billion. The tax would be deducted at source by promoters, meaning performers would receive less than their agreed fees. For instance, an artiste paid Shs1 million would take home Shs940,000.ICPA-U, led in the presentation by Silajji Kanyesigye Baguma, argues that increasing the rate to 15 percent could generate up to Shs10.5 billion annually. Baguma told legislators that the entertainment industry represents a growing but under-taxed segment of the economy, and that stronger measures are needed to bring informal earnings into the tax net.If adopted, the revised rate would see performers earn Shs850,000 from a Shs1 million booking—further intensifying concerns among artistes about shrinking incomes.The post Ugandan entertainers reject higher withholding tax proposal appeared first on MBU.