The government has tabled the Excise Duty (Amendment) Bill, 2026, which proposes significant increases in taxes on imported spirits and key building materials, including cement. The move, announced by the Minister of State for Finance, Henry Musasizi, aims to boost domestic revenue collection.
The proposed amendments seek to raise the excise duty on imported undenatured spirits from 80% or $2.5 per litre to 90% or $3 per litre, whichever is higher. For other imported alcoholic beverages, the duty would increase from 60% or $1.5 per litre to 70% or $2 per litre.
In the construction sector, the bill targets a rise in the excise duty on cement from 10% or 1,200 Ugandan shillings per 50kg bag to 20% or 1,500 shillings, whichever is higher. The government states these measures are designed to protect local industries and generate funds for national development, but they are expected to lead to higher consumer prices.
