Full list of products: government slaps hefty taxes on alcohol, fuel, cement, paint

The government has imposed new and higher taxes on several consumer goods, including fuel, alcohol, cement, sugar, cooking oil, paint and motorcycles.

Finance minister Henry Musasizi announced the measures during the 2026/27 national budget speech before Parliament.

Musasizi said Parliament had approved the tax changes under Value Added Tax (VAT), excise duty and stamp duty.

The measures are expected to raise hundreds of billions of shillings in additional revenue.

Government has increased the annual VAT registration threshold from Shs150 million to Shs300 million.

Musasizi said the move will ease compliance for small businesses and improve tax administration.

The measure is projected to generate Shs349 billion.

Excise duty on petrol and diesel has been increased by Shs200 per litre.

Government expects the fuel tax increase to raise Shs450 billion.

Excise duty on alcoholic drinks, including Uganda Waragi, Black Label, cognac and Amarula, has been increased from Shs1,700 to Shs3,500 per litre.

The measure is expected to generate Shs85 billion.

The tax on motorcycles at first registration has been increased from Shs200,000 to Shs500,000.

Government expects this to raise Shs26 billion.

The tax on single-use plastics has increased from 2.5 per cent or $70 per tonne to 25 per cent or $1,500 per tonne.

Musasizi said the measure seeks to protect the environment and raise Shs10 billion.

Excise duty on cooking oil has increased from Shs200 to Shs400 per litre.

The measure is expected to generate Shs25 billion.

Excise duty on cement has increased from Shs500 to Shs750 per 50kg bag.

Government expects the measure to raise Shs15 billion.

Excise duty on sugar has increased from Shs100 to Shs200 per kilogramme.

The measure is projected to raise Shs25 billion.

Government has introduced excise duty on selected paints and varnishes.

Locally manufactured paints and varnishes will attract 3 per cent tax or Shs50 per litre or kilogramme, whichever is higher.

Imported varnishes will attract Shs2,000 per litre.

The measure is expected to generate Shs24 billion.

Government has also introduced excise duty on cooking fat at Shs500 per litre or kilogramme.

This is expected to generate Shs15 billion.

A new stamp duty has been introduced on the first registration and transfer of motorcycles, tricycles and quadricycles.

The duty will be Shs30,000 for motorcycles, tricycles and quadricycles, and Shs200,000 for any other motorcycle.

Government expects the measure to generate Shs30 billion.