President Museveni Proposes Scrapping PAYE Tax for Scientists

President Yoweri Museveni has announced a proposal to eliminate Pay As You Earn (PAYE) tax for scientists across Uganda. The move is designed to align the financial treatment of the scientific community with that of the Uganda Peoples’ Defence Forces and the police, who already benefit from similar tax exemptions.

Speaking on the initiative, President Museveni indicated that the removal of the tax burden is a strategic priority to support those on the technical frontline of the country’s development. The proposal follows a long-standing government effort to prioritize sciences as a cornerstone for national economic transformation and industrial growth.

The decision reflects a broader trend in Ugandan public service remuneration where specific sectors are identified for fiscal relief. Currently, the Ugandan Income Tax Act provides exemptions for the official employment income of personnel in the army, police, and prison service.

If implemented, this policy would significantly increase the take-home pay for thousands of professionals in medical, engineering, and research fields. It comes at a time when the government is already under pressure to address the cost of living and wage disparities across different professional cadres.

The President has previously defended such selective exemptions, arguing that the country must protect and incentivize the human capital responsible for critical infrastructure and security. Critics, however, have often raised concerns regarding the fiscal implications of narrowing the tax base in a high-PAYE jurisdiction.

For scientists, the exemption would represent a major financial shift. Under current Uganda Revenue Authority structures, high-earning professionals can face marginal tax rates as high as 40 percent. Removing this requirement would likely serve as a retention tool to prevent the brain drain of technical experts to neighboring countries or the private sector.

This latest proposal builds on earlier directives where the President advocated for higher salary scales for science teachers and researchers. He has consistently maintained that while other sectors are important, the immediate funding of science and innovation is non-negotiable for Uganda’s long-term sovereignty.

The Ministry of Finance is expected to review the logistical requirements for amending the Income Tax Act to accommodate the new category. Parliamentary approval will be necessary to formalize the exemption and define the specific criteria for who qualifies as a scientist under the new tax regime.