The Ugandan government has tabled a sweeping set of tax proposals under the Excise Duty (Amendment) Bill, 2026, targeting a range of consumer and industrial goods in a move that is likely to raise the cost of living and construction across the country.
Presenting the bill before Parliament of Uganda, the Minister of State for Finance, Henry Musasizi, outlined a series of new levies aimed at increasing domestic revenue.
Among the key proposals is a Shs3,500 tax on imported un-denatured spirits with an alcoholic strength of less than 80% by volume. This measure is expected to directly impact the pricing of a wide range of alcoholic beverages on the Ugandan market, particularly imported spirits.
The bill also introduces a Shs1,000 levy per 50 kilograms on construction-related materials including cement, adhesives, grout, white cement, and lime.
Industry analysts warn that this adjustment will inevitably push up construction costs, with ripple effects likely to be felt in housing, infrastructure projects, and real estate development starting July 2026, when the measures are scheduled to take effect.
Further compounding concerns in the construction sector is a proposed excise duty of Shs50 per litre or kilogram—whichever is higher—on locally manufactured paints, varnishes, and lacquers.
Stakeholders argue that taxing locally produced inputs could undermine competitiveness and increase project costs at a time when Uganda is pursuing ambitious infrastructure expansion.
In addition to construction materials, the bill targets essential household commodities. A proposed Shs500 per litre levy on cooking oil is expected to place additional strain on household budgets, particularly for low- and middle-income families already grappling with high food prices.
The combined effect of these measures points to a broader fiscal strategy by government to widen the tax base and boost revenue collection.
However, economists caution that the timing and scope of the proposed taxes could exacerbate inflationary pressures and slow economic activity in key sectors.
Parliament is expected to scrutinize the proposals in the coming weeks, with debate likely to center on balancing revenue generation with the economic burden on citizens and businesses. If passed in their current form, the new excise duties will take effect in July 2026.
