In a bid to streamline Uganda’s tax regime and promote local value addition, the government has introduced several adjustments to excise duties and import levies for the Financial Year 2025/26. The excise duty on soft cap cigarettes has been increased to Shs 55,000 per 1,000 sticks, while hinge lid cigarettes now attract Shs 90,000 per 1,000 sticks, up from Shs 80,000.
For imports from outside the East African Community (EAC), the excise duty on soft cap cigarettes has doubled to Shs 150,000 per 1,000 sticks, and hinge lid cigarettes to Shs 200,000 per 1,000 sticks. In contrast, the government has removed the excise duty rate of 30 percent or Shs 950 per litre—whichever is higher—on beer manufactured from barley grown and malted in Uganda, citing redundancy.
Additionally, beer produced using at least 75 percent local raw materials (excluding water) will now be taxed at 30 percent or Shs 900 per litre, up from Shs 650 per litre, to ensure uniformity between specific and ad valorem tax rates. A new 1 percent customs fee on taxable items under the common external tariff has been introduced to align Uganda’s tax policy with other EAC partner states, such as Kenya, which applies a 2 percent CIF charge.
To encourage domestic processing and job creation, the government has imposed an export levy of USD 10 per metric ton on wheat bran, cotton cake, and maize bran—materials currently exported and re-imported as finished animal feed products.
On textile imports, duties have been revised downward: effective 1st July 2025, the import duty on fabrics will be USD 2 per kilogram or 35 percent (whichever is higher), reduced from USD 3 per kilogram, while the duty on garments will be USD 2.5 per kilogram or 35 percent, down from USD 3.5 per kilogram.
These measures reflect Uganda’s commitment to fostering industrial growth, protecting local producers, and harmonizing regional trade policies.
