It also proposes to criminalise public discussion of homosexuality and would penalise an individual who knowingly rents property to a homosexual.
The bill was originally proposed as a private member's bill in 2009 by David Bahati, a legislator with the ruling National Resistance Movement party.
"It is not for nothing that Uganda is known as the world's homophobia capital. This is a shameful piece of legislation, and I sincerely hope that Uganda's legislators see reason and kick this out of Parliament once and for all.
"The EU, as Uganda's biggest aid and trade partner, is in a strong position to influence Uganda's Parliament to see reason on this score. It is a fundamental aim of the EU to promote equality and human rights legislation across the world and if we are serious about pursuing this then we must stand firm.
"I hope that Baroness Ashton will act quickly to express the EU's disgust at this proposed legislation, and will be willing to back up that disgust with action."