Government is identifying more tax sources
Country's tax collection body, Uganda Revenue Authority (URA), will starting taxing Bibles, Qurans, prayer and hymn books.
URA authorities say not taxing such holy books in the past was an anormaly.
Religious institutions had protested the tax saying the "items are not meant for profit" but rather for "educating believers".
The price of the mentioned holy books is expected to increase.
New taxes, including social media tax, were proposed by the government in a move aimed at identifying more tax sources.
It also proposed a 1% new tax on mobile money transactions and 30% income tax on SACCOs.
In March, President Museveni faulted Ministry of Finance and URA of failing to identify ways of collecting more taxes to "fulfill our obligations to our people and end borrowing and dependency of aid (giant and projects) outside".
The president suggested an introduction of a "small fee of UGX100 per day from sim-cards that use social media" -- a proposal that would generate UGX400bn in additional revenue.
This story has been updated here after URA Commissioner General made a clarification