Parliament has passed the Hides and Skins Export Duty [Amendment] Bill, 2025, dropping 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 $0.80 per kilogram.
Presenting the Committee report, Amos Kankunda, Chairperson of Parliament’s Finance Committee, 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.
Legislators, 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 Members of Parliament 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 Authority] must assign the appropriate classification,” said Sheema Municipality MP, Dicksons Kateshumbwa.
Attorney General Kiryowa Kiwanuka clarified that the law targets exports classified as hides, not food.
“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,” he stated.
Parliament ultimately voted to maintain the tax on all hide-related exports, including glue stock, aligning with the broader national push for industrialisation and local value addition.
Parliament Passes Stamp Duty Amendment to Ease Access to Credit
In the same sitting, Parliament also passed the Stamp Duty [Amendment] Bill, 2025, introducing a new “near-duty” classification and scrapping the longstanding Shs 15,000 duty on agreements and mortgage deeds.
Henry Musasizi, Minister of State for Finance (General Duties), explained that the amendment seeks to reduce the cost burden of formalising legal and credit agreements.
“The bill provides for near-duty for agreements or memorandum of an agreement and a mortgage deed,” he said.
Committee Chairperson Amos Kankunda supported the move, stating that the removal of the Shs 15,000 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,” 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 also backed by Attorney General Kiryowa Kiwanuka, who said the bill responds to earlier concerns that stamp duty was being charged 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.
