Gov’t Imposes New Taxes on Cement, Spirits

Alcohol consumers and the construction industry face fresh price hikes as the government tables the Excise Duty (Amendment) Bill, 2026, seeking to impose higher levies on imported spirits and building materials.

Minister of State for Finance, Henry Musasizi, presented the bill in Parliament, proposing a UGX 3,500 levy per litre on any other un-denatured spirits imported into Uganda with alcoholic strength by volume of less than 80%. The new rate will apply as “UGX 3,500 per litre or 80% whichever is higher,” according to the bill’s amendments to Schedule 2 of the Excise Duty Act.

The proposal also introduces a UGX 1,000 tax per 50kg bag on cement, adhesives, grout, white cement, or lime. These measures are set to take effect on July 1, 2026, potentially driving up costs for alcohol importers and construction projects across the country.

Musasizi defended the changes as necessary to boost domestic revenue. “This amendment revises the rates of excise duty on certain excisable goods to reflect economic realities and support national development priorities,” he stated while tabling the bill.

Industry players have raised concerns over the potential impact. A construction firm executive, speaking on condition of anonymity, warned: “Adding UGX 1,000 per 50kg bag of cement will directly increase the cost of building materials. This could slow down housing and infrastructure projects at a time when many Ugandans are struggling with high living costs.”

Importers of spirits also expressed worry. One distributor noted, “The levy on imported spirits will make premium brands more expensive for consumers. While we understand the need for revenue, such taxes often push buyers towards cheaper, sometimes unregulated alternatives.”

The bill forms part of broader government efforts to raise additional revenue amid fiscal pressures. Analysts say the changes could generate significant funds but risk fueling inflation in key sectors.

As Parliament prepares to debate the proposals, stakeholders are calling for careful consideration to balance revenue goals with economic hardships facing ordinary Ugandans. The construction boom and entertainment industry may feel the pinch first when the new rates kick in next financial year.