Sugarcane farmers from the Bunyoro and Tooro sub-regions, operating under the Bunyoro Tooro Sugarcane Farmers Association (BUTOS), have opposed the government’s proposed increase in excise duty on sugar, warning that it could severely affect production and push many growers out of the sector.
The proposal, contained in the Excise Duty Amendment Bill 2026, seeks to raise excise duty on a kilogram of sugar from Sh100 to Sh300. Farmers argue that the increase will significantly raise production costs and worsen already difficult economic conditions.
Patrick Byamukama said the tax increment would have a direct negative impact on farmers, noting that the burden on sugarcane growers is already high. He warned that many could be forced to abandon sugarcane farming if the proposal is passed.
Byamukama added that farmers already face multiple taxes, including Value Added Tax (VAT), which he said indirectly affects their earnings. He also noted that sugarcane farmers collectively contribute about Sh500 billion in taxes and called for wider consultation before any new fiscal measures are introduced.
Robert Atugonza, who represents Bunyoro-Tooro on the Uganda Sugar Industry Stakeholders Council and also chairs the Masindi District Sugarcane Outgrowers Association Limited (MASGAL), accused government of misleading the public by framing the levy as a tax on sugar rather than on farmers.
He urged Parliament’s trade committee to critically review the proposal and called on MPs from the Bunyoro and Tooro caucus to reject it.
Other farmers also expressed concern. Barwane Batinire called for a united stance against the tax proposal, while Mary Mujumura urged Members of Parliament to engage directly with farmers before debating the Bill.
Phinehans Kyotasobora emphasized the importance of involving technical experts from the Ministry of Finance, Ministry of Trade, and Parliament to ensure informed decision-making on the proposed tax changes.
The farmers’ opposition comes as BUTOS, established in July 2025, continues to position itself as a unified body representing sugarcane growers in Bunyoro and Tooro amid rising concerns over taxation and production costs in the sugar industry.