Musasizi Meets Sugar Millers Over Proposed Excise Duty Hike

What the report says

Finance Minister Henry Musasizi has agreed to review a proposed increase in Uganda’s sugar excise duty after meeting manufacturers in Kampala to hear their concerns, according to Nile Post. The proposal would double the tax from Shs100 to Shs200 per kilogramme in the 2026/27 financial year, but industry leaders argued the change could weaken consumption, strain producers and reduce overall tax receipts.

The Uganda Sugar Manufacturers Association said the sector is already dealing with falling prices and rising output, making a larger levy harder to absorb. Its chairman, Jim Kabeho, said domestic sugar prices have dropped sharply as production capacity has expanded, and he warned that the tax rise could discourage demand for locally made sugar. The association also raised separate concerns about tariff and non-tariff barriers in the East African Community that it says limit access to regional markets despite surplus production at home.

Musasizi praised the industry’s contribution to jobs, growth and revenue, and said the ministry would study the concerns before reaching a final decision. He said the review would be completed within two weeks, after which government would decide whether to keep, amend or drop the proposal before the legislative process continues.

In broader context, excise duties are often used both to raise revenue and influence consumer prices, so changes to them can affect manufacturers, shoppers and government collections at the same time.