The Institute of Certified Public Accountants of Uganda has urged government to drop the proposed increase in sugar taxes contained in the Excise Duty Amendment Bill.

Under the proposal, the tax on sugar would rise from 100 to 300 shillings per kilogram.

However, the institute argues that sugar remains a key input for micro and small-scale food and beverage enterprises, and that the increase could place unnecessary pressure on local businesses.

Speaking on behalf of the institute’s tax and economic policy committee, Chairperson Silagye Kanyesigye said that while public health concerns are valid, Uganda is not yet at a stage where sugar consumption should be discouraged through heavy taxation.

He warned that higher sugar taxes could encourage smuggling from neighboring countries, potentially undermining domestic manufacturers and weakening industrial growth.

Kanyesigye also noted that increased input costs could force many small and medium enterprises out of business, with disproportionate effects on women and urban low-income households.

At the same time, the institute welcomed the proposed withholding tax on entertainers but recommended increasing it from 6% to 15%.

During discussions with Members of Parliament, including Vice Chairperson Moses Aleper, questions were raised about whether the tax would extend to private events.

In response, Kanyesigye advised that the tax should be limited to public performances such as concerts and should be clearly defined in law to avoid ambiguity.

By Francis Lubega

15ht April 2026

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