DIALOGUE: Unlocking Uganda’s Clean Energy Transition through Tax Reform
Are the proposed tax reforms practical and implementable with the current systems? What should be prioritised with the current tax systems and what should be prioritised next?
These were some of the questions that stakeholders discussed during the renewable clean energy tax policy validation workshop in Kampala.
This convening follows earlier development of a taxation brief under SUSTAINED Phase I and as guided by the directives of the Commissioner, Ministry of Energy and Mineral Development (MEMD) and Ministry of Finance, Planning and Economic Development (MoFPED).
SUSTAINED is 'Supporting Improved Access to Innovative Energy Solutions in Displacement Settings' project.
Siraji Magara Luyima, Energy and Extractives Coordinator at Oxfam in Uganda speaking at the summit
Evidence of the SUSTAINED project highlighted clean energy implementation challenges, which include administrative delays in processing exemptions that add warehousing and demurrage costs.
Other challenges include multiple layers of taxation on solar DC freezers and cold-chain technologies that are critical for food security and health in off-grid areas; and high cumulative tax burden on solar electric cooking systems that continues to make clean cooking unaffordable for many households.
To address these challenges, stakeholders from the government, Uganda Revenue Authority (URA), energy service companies, civil society organisations convened to discuss how to address the above clean tax energy challenges.
This workshop aimed to leverage collective expertise and insights to refine taxation policies that support energy access in displacement settings, ensuring a coordinated approach that aligns with the upcoming National Renewable Energy Strategic Plan.
“This workshop aimed to leverage collective expertise and insights to refine taxation policies that support energy access in displacement settings, ensuring a coordinated approach that aligns with the upcoming National Renewable Energy Strategic Plan”
Robert Ssuuna, speaking on behalf of the Commissioner Tax Policy Department at MoFPED said that the ministry will work with URA and MEMD to address the identified bottlenecks and improve predictability and efficiency in the tax system.
He also noted that the MoFPED calls for stronger inter-agency coordination and regular stakeholder dialogue. Platforms like this one must continue beyond today so that policy evolves with technology and market realities.
The participants convened to validate and refine the policy barriers that the current tax incentives are undermined by inconsistent application, administrative inefficiencies, and fragmented tax structures across the supply chain.
Once these barriers are addressed, the policy reforms are projected to unlock over 353,000 green jobs and significantly reduce household energy costs, accelerating adoption of clean energy solutions.
This convening was organised by Mercy Corps Uganda.
Oxfam, in partnership with Mercy Corps Uganda and CARE International Uganda with support from the Embassy of the Kingdom of the Netherlands, is implementing the SUSTAINED address the challenge of access and use of clean energy solutions in displacement settings.
Outcome 3 of the project focuses on private-sector led policy engagements for strengthening the regulatory environment for off-grid renewable energy solutions in refugee hosting areas.
A subsequent meeting will be held to consolidate and refine the recommendations, culminating in a conclusive tax policy brief to be submitted to the relevant ministries.