PSFU hails tax break for startups in new budget

KAMPALA, Uganda — The Private Sector Foundation Uganda (PSFU) has lauded the government’s decision to offer tax relief to startups in the new national budget.

Speaking at the PSFU’s National Post-Budget Dialogue, Vice Chairperson Sarah Kagingo applauded the government’s efforts to maintain macroeconomic stability and promote private sector growth.

Kagingo highlighted the government’s measures to support the private sector, including a three-year income tax holiday on spare parts and the recapitalization of the Uganda Development Bank.

“We welcome the three-year income tax holiday on spare parts — it’s a critical incentive that will encourage young businesses to start innovating and formalizing,” Kagingo said.

However, Kagingo also urged the government to clear domestic arrears, which have crippled many businesses. She noted that the government has increased domestic arrears clearance from 200 billion to 1.4 trillion Uganda shillings.

“We urge the government to extinguish these arrears within the next two years,” Kagingo said.

The PSFU also commended the government’s efforts to promote tourism, including the launch of the Karamoja Tourism Project and increased investments in tourism infrastructure.

Kagingo emphasized the need for affordable credit, particularly for women, and highlighted the importance of science, technology, and innovation in driving economic growth.

She also cautioned against the dangers of misinformation and urged private sector leaders to verify information before sharing it.