A cross section of Ugandan singers and entertainers
HABARI DAILY I Kampala, Uganda I A proposal to introduce a 15 per cent withholding tax on public entertainers is generating debate, with experts supporting the idea but lawmakers questioning how it will work on the ground.
The Institute of Certified Public Accountants of Uganda has backed the proposal, arguing that Uganda’s entertainment industry is growing rapidly but remains largely under-taxed.
Silajji Kanyesigye Baguma told the Uganda Parliament that the measure is aimed at expanding the tax base while bringing creatives into the formal economy.
“This is an emerging sector that has not been fully tapped into. Applying withholding tax on gross payments to public entertainers will boost revenue and formalise taxation among creatives,” he said.
Under the proposal, organisers of public entertainment events would be required to deduct 15 per cent from payments made to performers and remit it to the Uganda Revenue Authority. However, this is where concerns begin.
Kiboga East MP Keffa Kiwanuka questioned whether the policy could unintentionally burden ordinary Ugandans, especially those hosting private events.
“How do you expect someone organising a graduation party to start withholding tax for an entertainer? Doesn’t this become an unnecessary burden and cause anxiety?” Kiwanuka asked. In response, Kanyesigye clarified that the intention is not to tax private functions such as weddings, introductions, or family celebrations.
“We need to clearly define what public entertainment is. If I invite an artist to perform at my home, that is a private function, and it shouldn’t fall under this clause,” he explained.
He stressed that the focus should instead be on commercial platforms where entertainers earn income in a structured setting.
“We are looking at concerts, radio, and television engagements. Those are easier to regulate and already operate within formal systems,” he added.
ICPAU emphasized that without clear definitions, the policy risks confusion and possible resistance from the public.
Beyond entertainers, the institute also supported similar withholding tax measures targeting insurance agents, mobile money agents, and earnings from gaming and sports betting — sectors it says are equally growing but loosely taxed.
The debate now centers on striking a balance between increasing government revenue and avoiding unnecessary pressure on citizens.
For many in the creative industry, the proposal could mark a turning point — either bringing long-overdue structure to the sector or creating new challenges if not properly implemented.
As discussions continue, clarity on what qualifies as “public entertainment” may ultimately determine whether the proposal succeeds or faces pushback.
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