Published on 15/05/2025
Parliament has passed the Stamp Duty (Amendment) Bill, 2025 introducing a “near-duty” classification and effectively scrapping the longstanding Ugx. 15,000 duty on agreements and mortgage deeds.
The Stamp Duty (Amendment) Bill, 2025 and the Hides and Skins Export Duty (Amendment) Bill, 2025 were passed on Wednesday 14 May 2025 providing far-reaching implications for access to credit and Uganda’s export taxation regime.
The Minister of State for Finance (General Duties), Hon. Henry Musasizi, said the Stamp Duty (Amendment) Bill, 2025 sought to provide for near duty for agreements or memorandum of an agreement and a mortgage deed.
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The Chairperson of the Finance Committee, Hon. Amos Kankunda, supported the move, stating that the removal of the Shs15,000 stamp duty would ease the registration of agreements and encourage formalisation of contracts.
“The Committee recommends that the Shs15,000 stamp duty on agreements or memorandum of an agreement should attract near-duty as proposed,” Hon. Kankunda stated.
He added that stamp duties on credit-related instruments have been driving up borrowing costs and discouraging private sector growth.
“To support access to affordable credit and promote business growth, the government proposes near-duty on mortgage deeds and mortgage of a crop,” he said.
This position was backed by the Attorney General, Hon. Kiryowa Kiwanuka, who clarified that the bill addresses earlier concerns over stamp duty levied even on employment appointment letters.
“The issue was to remove the duty on any of those registrable memorandum… now you can have your agreement without duty,” he said.
Parliament also passed the Hides and Skins Export Duty (Amendment) Bill, 2025, dropped exemptions that previously allowed the export of glue stock and semi-processed hides and skins without taxation.
Under the new law, all exports of hides and skins, including glue stock will attract a levy of $US0.80 per kilogramme.
Presenting the Committee report, Hon. Kankunda noted that the removal of exemptions was prompted by a surge in glue stock exports that had depleted raw materials for local tanneries and hindered value addition efforts.
“The Amendment seeks to enhance availability of raw materials for Uganda’s tannery industry and support local value addition,” he said.
Members however debated passionately over the classification of “glue stock” products, offcuts of hides processed into a food item known as ponmo for West African markets.
While some MPs called for the exemption of glue stock to encourage innovation and export diversification, others insisted it should be taxed like any other hide-based product.
“We cannot say someone is exporting hides when they have cooked and packaged them as food. The URA [Uganda Revenue Authourity] must assign the appropriate classification,” said Hon. Dicksons Kateshumbwa, (NRM, Sheema Municipality).
Kiryowa Kiwanuka however stated that if they are exporting food, the law does not deal with them, however if URA is classifying them as hides, then they must pay the levy.
The House voted to maintain the tax on all hide related exports, including glue stock, in line with the broader push for industrialisation and local value addition.
