A United States tax on overseas money transfers threatens to reduce cash flows from Ugandans living abroad when the measure starts next year. The Bank of Uganda said the one percent levy under the One Big Beautiful Act will increase costs for people sending funds home from America, which provides 480 million dollars annually.
Uganda collects 1.4 billion dollars from citizens working overseas each year. Britain contributes 320 million dollars, while the United Arab Emirates sends 250 million dollars to households and businesses. The central bank warned that higher fees may push users toward unregulated channels that lack proper oversight.
The tax takes effect in January 2026, following President Donald Trump's signing of the legislation on Friday, July 4, 2025. Authorities expect remittances from Gulf states and European nations to remain steady as Ugandan worker populations expand in those regions. Officials recommended building alternative payment networks to lessen dependence on American transfer systems.
Uganda collects 1.4 billion dollars from citizens working overseas each year. Britain contributes 320 million dollars, while the United Arab Emirates sends 250 million dollars to households and businesses. The central bank warned that higher fees may push users toward unregulated channels that lack proper oversight.
The tax takes effect in January 2026, following President Donald Trump's signing of the legislation on Friday, July 4, 2025. Authorities expect remittances from Gulf states and European nations to remain steady as Ugandan worker populations expand in those regions. Officials recommended building alternative payment networks to lessen dependence on American transfer systems.
