Parliament has passed the Stamp Duty (Amendment) Bill, 2025, effectively scrapping the Shs15,000 charge previously levied on agreements or memoranda of agreement.
The decision was made during a plenary sitting on Tuesday, marking a significant step in reducing the cost of formal transactions for individuals and businesses.
The amended legislation provides that such agreements will now attract nil duty, a move lawmakers say is intended to ease the cost of doing business and enhance financial inclusion.
This development is expected to benefit small-scale entrepreneurs, informal sector players, and individuals engaged in contractual arrangements that previously required a stamp duty payment.
Finance officials welcomed the change, noting that while it may result in a marginal reduction in government revenue, the long-term benefits of increased compliance and economic activity outweigh the immediate financial loss.
The Stamp Duty (Amendment) Bill, 2025, is part of a broader tax reform agenda aimed at creating a more enabling environment for investment and trade. The Bill now awaits presidential assent before it becomes law.
Observers have lauded the move as a progressive step in tax administration and a relief for many Ugandans burdened by transactional levies.