Sugarcane farmers from the Bunyoro and Tooro sub-regions have rejected a government proposal to triple excise duty on sugar, warning it could cripple livelihoods and destabilize the industry.
Operating under the Bunyoro Tooro Sugarcane Farmers Association (BUTOS), the farmers are urging Parliament to block the proposed increase from Sh100 to Sh300 per kilogram, contained in the Excise Duty Amendment Bill, 2026.
The opposition was formalized during an extraordinary meeting held on April 20 at Kolping Hotel in Hoima, bringing together farmers from Masindi, Kikuube, Kyenjojo, Kiryandongo and Hoima districts.
BUTOS chairperson Patrick Byamukama said the proposed tax would significantly raise costs across the value chain, ultimately hurting farmers. He explained that the increment would translate into about Sh150,000 per 50kg bag of sugar and Sh30,000 per tonne, a burden he described as excessive given existing taxes, including the 18 percent Value Added Tax.
“If this tax is passed, farmers will bear the cost while government takes the benefit,” Byamukama said, adding that the association plans to petition the Speaker of Parliament to review the proposal.
Farm leaders argue that the tax, though imposed on sugar, will inevitably be passed down to growers through lower cane prices. Robert Atugonza, a representative on the Uganda Sugar Industry Stakeholders Council, warned that farmers across the country are united in rejecting the measure.
He added that farmers could suspend cane supply to millers if the tax is approved, a move that could disrupt production in an industry that employs thousands directly and indirectly.
Stakeholders are instead calling on government to widen the tax base to other sectors such as dairy, while addressing revenue leakages within the sugar industry.
Farmers also used the meeting to demand a review of the Sugar Act, particularly provisions on cane pricing, arguing that the current framework does not fully account for by-products like electricity, bagasse and ethanol.
More consultations and mobilization campaigns are underway as farmers seek to rally parliamentary support against the proposed tax hike.