The Parliament of Uganda has passed the Excise Duty (Amendment) Bill 2026, introducing significant tax increases on a range of essential goods. The move has sparked widespread public concern over the rising cost of living.
The newly approved law raises levies on everyday items, including cement, fuel, sugar, cooking oil, motorcycles, and second-hand clothes and shoes.
Key tax changes include:Fuel increased by UGX 200 per litre, cement doubled to UGX 1,000 per bag and sugar tripled to UGX 300 per kilogram.
Additional increases apply to cooking oil, motorcycles, and second-hand clothing and footwear. The changes take effect immediately following the bill’s passage.
The announcement has triggered strong reactions from citizens and analysts alike. Many warn that the tax hikes could accelerate inflation, drive up the cost of basic goods and services, and disproportionately affect low-income households.
There are also concerns about a potential rise in smuggling, particularly for heavily taxed goods such as sugar and second-hand clothing.
Critics are questioning whether the government has put in place adequate measures to cushion vulnerable populations from price shocks and to support local industries that may struggle under the increased tax burden.
With implementation already underway, attention now turns to how businesses and consumers will adapt, and whether the government will respond to growing pressure to review or adjust the new measures.
The bill represents one of the most aggressive tax adjustments in recent years, setting the stage for a broader national debate on economic policy and affordability.