Government has tabled the Excise Duty (Amendment) Bill, 2026 before Parliament, proposing a series of new taxes that could raise the cost of living and construction across Uganda.
The Minister of State for Finance, Henry Musasizi, presented the Bill, which seeks to revise excise duty rates on several key commodities, with implementation set for July 1, 2026, if approved.
Under the proposed law, government plans to introduce a levy of Shs3,500 per litre on imported undenatured spirits with an alcohol content below 80%.
This tax, which will apply at a rate of 80% or Shs3,500 per litre—whichever is higher—is expected to increase the retail price of imported alcoholic beverages.
The Bill also targets the construction sector, proposing a Shs1,000 tax per 50kg on cement, adhesives, grout, white cement, and lime.
Industry players warn that this could significantly raise building costs, potentially affecting housing affordability and infrastructure development.
In addition, the government is seeking to impose new levies on paints and related products.
Locally manufactured paints, varnishes, and lacquers would attract a tax of 3% or Shs50 per litre or kilogram, while imported variants would be taxed at 10% or Shs2,000 per litre or kilogram, whichever is higher.
Household essentials have not been spared. The Bill proposes a Shs500 per litre or kilogram levy on cooking oil, a move likely to push up food preparation costs for many Ugandan families.
According to the draft law, the amendments are intended to revise excise duty rates under Schedule 2 of the Excise Duty Act, Cap. 336, as part of government’s broader revenue mobilization strategy.
If passed by Parliament, the new tax measures will take effect at the start of the next financial year on July 1, 2026.
