KAMPALA — Government is tightening the noose on Uganda’s booming entertainment industry, proposing a new 6% tax on performance fees for musicians, comedians, actors and all public performers.
The measure, tucked inside the Income Tax (Amendment) Bill, 2026, was tabled in Parliament this week by State Minister for Finance Henry Musasizi.
If passed, the tax will kick in July 2026, marking a major shift in how artists’ earnings are tracked—and taxed.
How the tax will hit
Forget chasing artists after concerts—government is going straight for the source.
Under the proposal:
- Event promoters will deduct 6% from every Ugandan performer’s agreed fee
- The money goes directly to the Uganda Revenue Authority (URA)
- Artists walk away with 94% of their pay
Foreign performers won’t be spared either—they face a steeper 15% withholding tax.
Musasizi didn’t mince words:
“When you are doing your concerts or shows… we want to take 6% of that income because you are earning.”
Not a new tax—just a harder one
Officials insist this isn’t a fresh tax—it’s enforcement.
For years, entertainers were supposed to declare and pay income tax, but enforcement has been patchy in a sector dominated by cash deals, under-the-table payments and weak record-keeping.
Now, government is flipping the script—forcing compliance at the point of payment.
Why now?
Simple: money.
The entertainment industry has exploded—sold-out concerts, big endorsement deals, and rising gate collections—but tax returns from the sector have remained suspiciously thin.
By dragging promoters into the process, government aims to:
- Plug revenue leaks
- Formalise the creative economy
- Force high-earning artists into the tax bracket
The move also comes hot on the heels of reforms aimed at strengthening royalty collection for musicians, signaling a broader push to regulate the industry.
Mixed reactions on the ground
The proposal has already sparked debate:
- Supporters say it’s long overdue—top artists have been “eating big” while dodging taxes
- Hardliners argue 6% is too soft, pushing for 10–20%
- Critics warn it could suffocate upcoming artists struggling with small gigs and high production costs
- Others are asking: why now, when URA has previously taxed concerts at entry points?
For now, artists themselves are largely silent—but behind the scenes, the industry is watching nervously.
What next?
The bill heads for full parliamentary scrutiny, where it could face amendments—or political resistance.
If passed:
- Promoters who fail to deduct the tax will face penalties
- Artists can claim the 6% as a tax credit when filing annual returns—meaning it’s not double taxation, just early collection
Bottom line
Government is no longer trusting the system—it’s enforcing it.
And for Uganda’s entertainers, the message is clear:
the era of cash-and-carry, tax-free shows is coming to an end.
