At least $9m (about Shs22b) is expected to be raised annually from the Tourism Development Levy (TDL) tax to create alternative funding for tourism, the government has said.
The tax, which will be operationalised in the next financial year, will be levied on major areas, including hotels, food, gym, among other tourist service providers.
The Minister of Tourism, Ms Maria Mutagamba, said the money will go to the Tourism Development Fund.
"The Uganda Tourism Act provides for the minister after consultation with the minister responsible for financing by statutory order imposes a Tourism Development Levy," Ms Mutagamba said .
"Implementation of this section has been hampered by the existence of the Local Hotel Service Tax which competes for the same source," she added.
She made the revelation during the inauguration of the new Uganda Tourism Board of directors at the weekend.
The board's 2013/2014 funding will remain at Shs1.4 billion despite a funding gap of Shs17 billion from the last financial year.