Last checked: October 2026. Rules and rates change. This guide is general information, not tax or legal advice.
When goods from India enter Uganda for sale, the Uganda Revenue Authority charges several taxes at the border. Together they often add more than half of the shipment's value, so price them in before you order.
The value the taxes are charged on
Customs works from the customs value. For most shipments this is the CIF value: the cost of the goods, plus insurance, plus freight to the point of entry.
The taxes
| Tax | Rate | Notes |
|---|---|---|
| Import duty | 0%, 10%, 25% or 35% | 0% for raw materials and capital goods, 10% for semi-finished goods, 25% for finished goods, 35% for selected finished goods. Some sensitive products are charged more. |
| VAT | 18% | Charged on the customs value plus import duty and excise. VAT-registered businesses can usually claim it back. |
| Withholding tax | 6% | An advance payment of income tax. It is credited against your income tax, and compliant taxpayers can apply for exemption. |
| Infrastructure levy | 1.5% | Charged on the customs value of goods entered for home use. |
| Import declaration fee | 1% | Charged on the customs value. In force since 1 July 2025. |
| Excise duty | Varies | Only on listed goods, such as paints, plastics, fuel and motorcycles at first registration. |
Uganda applies the East African Community common external tariff, so the duty band depends on the product's tariff code. Two products that look alike can sit in different bands.
A worked example
A shipment of finished goods with a customs value of US$10,000, in the 25% duty band, with no excise:
| Import duty, 25% of 10,000 | $2,500 |
| VAT, 18% of 12,500 | $2,250 |
| Withholding tax, 6% of 10,000 | $600 |
| Infrastructure levy, 1.5% of 10,000 | $150 |
| Import declaration fee, 1% of 10,000 | $100 |
| Total duty and taxes | $5,600 |
That is 56% of the customs value. A VAT-registered business that also credits the withholding tax recovers $2,850 of it later, which leaves a net cost of $2,750.
Changes from 1 July 2026
- Medicines, medical supplies and pesticides are exempt from the infrastructure levy and the import declaration fee.
- Worn clothing and other worn articles carry a new environmental levy of 30% of the CIF value.
- Excise duty changed on several goods. Motorcycles now pay UGX 500,000 at first registration, and imported paints and varnishes pay 10%.
Check before you commit. The revenue authority decides the tariff code, the customs value and the tax due. Use our landed-cost calculator for an estimate, and rely on your quotation for your own products.