KAMPALA, UGANDA — Government has proposed a 6 percent withholding tax on payments made to public entertainers, in a move aimed at strengthening tax compliance within Uganda’s creative sector.
The proposal was announced by State Minister for Finance Henry Musasizi and is expected to apply to income earned from concerts, shows, and other public performances.
Officials say the tax would be deducted at source by event organizers before payments are made to artists — a requirement that already exists in principle but has faced challenges in enforcement.
The move has sparked mixed reactions within the entertainment industry, with some stakeholders urging artists to quickly adapt to stricter tax oversight. Media personality Douglas Lwanga advised entertainers to formalize their operations.
“If you’re an artist, it’s time to hire a tax consultant ASAP,” Lwanga said in a post on X. “Make sure you educate yourself on filing tax returns, issuing receipts, and keeping proper records of your expenses.”
However, others have raised concerns about the feasibility of implementing the tax, citing the largely informal nature of Uganda’s entertainment industry. Commentator Wayne Frank Ntambi argued that many artists operate outside formal systems, making enforcement difficult.
“You can’t properly tax people who are working in an informal way,” Ntambi said. “Many shows are paid in cash, with no records, no tickets, and no contracts. If you bring a tax like this, people will just hide more.”
Critics warn that the measure could discourage artists from formalizing their businesses, including registering their work with institutions such as the Uganda Registration Services Bureau and the Uganda Performing Right Society.
They argue that imposing taxes at the point of performance without first strengthening systems for documentation and intellectual property protection could undermine ongoing efforts to professionalize the sector.
The proposal comes amid broader government efforts to expand the tax base and increase domestic revenue collection, particularly from fast-growing sectors such as entertainment and the creative economy.
If implemented, the withholding tax would mark a significant shift in how Uganda taxes artists’ income, potentially bringing more entertainers into the formal economy — but also testing the balance between regulation and industry growth.
