The bills are here. The pain is planned.
Parliament sat in Plenary today to receive the tax proposals for Financial Year 2026/2027. Every April, this is where government shows its hand. This year, that hand is reaching for your sugar, your boda ride, your mivumba shirt, and your bag of cement.
The Finance Ministry calls it “broadening the tax base.” The Finance Committee and minority report calls it “burdening the citizen.” Both agree on one thing: government wants Shs2 trillion more from your pocket.
Here is what changed, who is fighting it, and how it hits your table.
Sugar: Shs100 More Per Kilo
Clause 2(c) of the Excise Duty Bill raises excise duty on sugar from Shs100 to Shs200 per kilogram.
Finance Ministry says sugar is a fast-moving consumer good with room to contribute more. They argue consumption has grown and the sector can absorb the tax. Besides finance Ministry says that sugar has caused obese and chronic illnesses so increasing tax on it will reduce its consumption.
Hon. Ssemujju disagreed in his minority report. He called it “unfair taxation that disproportionately burdens the citizenry.” His point is simple: sugar is not beer. It is in tea, porridge, mandazi, and every child’s cup. When you add Shs100 per kg, the shopkeeper adds Shs200. The tea vendor adds Shs500 to your morning cup by next week.
This tax does not hit factories. It hits breakfast.
Boda Bodas: Registration Jumps to Shs500,000
Clause 2(g) wants to move excise duty on motorcycles at first registration from Shs200,000 to Shs500,000. That is 150% in one financial year.
Government’s logic: the boda boda sector is “rapidly growing” and should pay more.
Hon. Connie Galiwango of Mbale City told Plenary to spare the industry. She suggested Shs250,000 instead. Her argument: boda bodas are not a luxury. They are school fees, rent, and food for 2 million families.
If this passes, a new Bajaj will cost half a million more before it carries a customer. Every stage in Kampala will adjust fares. Your Shs3,000 trip becomes Shs3,500 by May.
Mivumba ‘Old clothes’: 30% Environmental Levy
Clause 4 of the External Trade Bill slaps a 30% levy on “worn clothing and other worn articles” at CIF value. That is mivumba.
Government calls it an “environmental levy.” The claim is that second-hand clothes damage the environment.
Hon. Brennanda from Luweero filed a minority report rejecting it. “Second-hand clothing is an essential good, not luxury,” she said. “Increasing taxes on essentials affects the poor.”
She is not wrong. The teacher in Mukono dresses her children from Owino. The student in Mbarara buys shirts at Shs4,000. Add 30% at the port and that shirt is Shs5,200 before the trader adds transport and profit. Mitumba is not a fashion choice. It is survival.
Cement: Shs1,000 Per 50kg Bag
Clause 2(b) doubles excise duty on cement, adhesives, grout, white cement and lime from Shs500 to Shs1,000 per 50kg.
Government needs roads. Cement builds roads. So cement pays.
But cement also builds rentals in Seeta, shops in Gulu, and toilets in Kabale. Add Shs500 per bag and a 50-bag foundation costs Shs25,000 more overnight. The landlord will recover that from you. Rent does not go down in Uganda. It only goes up.
Cars: 13-Year Limit Rejected
Government proposed to cut the age limit for imported used vehicles from 15 to 13 years. The Finance Committee rejected it.
Their reason was not environmental. It was economic. Newer cars cost more. If you block 14 and 15-year-old cars, you price out teachers, nurses, and small business owners. They stay on boda bodas.
This is one fight the mwananchi won. For now.
Software: VAT on the Hustle
Clause 4 of the VAT Bill proposes VAT on imported software.
Hon. Muhammed Nsereko of Kampala Central opposed it strongly. “Technology is the only window for the young, unemployed and innovative people,” he told Plenary.
He means the graphic designer in Ntinda paying for Canva. The DJ in Kawempe buying Serato. The church media team renewing ProPresenter. Add 18% VAT and you tax the hustle before the first client pays.
Waragi and Fuel: The Usual Suspects
Imported spirits below 80% alcohol move from Shs1,700 to Shs3,500 per litre. Your tot gets expensive by Friday.
The Leader of Opposition warned on fuel. “The proposed fuel tax increment will have a ripple effect on the cost of many goods and services.” He added: “If tougher action is taken against corruption, then there won’t be need to burden taxpayers.”
When fuel moves, everything moves. The tomato from Kapchorwa. The taxi from Entebbe. The kerosene lamp in Arua.
The Real Problem: Tax by Guesswork
Hon. Ssemujju said it clearly: “Every year, this government introduces tax bills without a taxation policy in place. This approach allows government to engage in speculation and guesswork.”
That is why sugar, boda bodas, and mivumba are taxed in the same year. There is no plan. There is only a gap in the budget.
These are still bills. Plenary will debate them. Some will die. Some will pass. But the intention is public.
Government wants more money. It is looking in your cup of tea, your shirt, your boda ride, and your bag of cement to find it.
