Tax On Imported Software To Weaken Uganda’s Cyber Security, Increase Cost Of Doing Business -ICT Ministry

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Dr. Aminah Zawedde, Permanent Secretary, Ministry of ICT and National GuidanceThe Ministry of ICT and National Guidance has asked Parliament not to impose Value Added Tax (VAT) on software imported into Uganda, warning that such a move would weaken Uganda’s cyber security and make software more expensive.This will in turn lead to the increase in the cost of administration for Government and operations for private businesses.The warning was issued by Dr. Aminah Zawedde, Permanent Secretary, Ministry of ICT and National Guidance while appearing before Parliament’s Committee on Information, Communications and Technology (ICT) on 2nd April 2026, to present the sector’s 2026/27 Ministerial Policy Statement.Her remarks were in response to a question raised by Tonny Ayoo (Kwania County) who sought the Ministry of ICT and National Guidance’s opinion on the latest proposal to have 18% VAT imposed on software imported into Uganda with the aim of raising UGX4Bn in revenue and what impact the rejection of the proposal would have on revenue generation.Dr. Zawedde asked the Minister of State for ICT, Godfrey Kabbyanga to appeal to Government to have the proposed tax dropped, noting that some of the critical software that Government is using like Integrated Financial Management System (IFMS) use software that is not developed locally, yet that software helps Government in efficient payments for Government activities and services.She further added that the tax on software will also threaten Uganda’s cybersecurity, saying that at the moment, cybersecurity is quite expensive yet it is crucial at defending financial systems.The post Tax On Imported Software To Weaken Uganda’s Cyber Security, Increase Cost Of Doing Business -ICT Ministry appeared first on Business Focus.