Sugarcane farmers from the Bunyoro and Tooro sub-regions, operating under their umbrella body the Bunyoro Tooro Sugarcane Farmers Association (BUTOS), have strongly opposed the government’s proposed increase of excise duty on sugar, warning that it could cripple the industry and push farmers out of business.
The proposal, contained in the Excise Duty Amendment Bill 2026, seeks to raise the excise duty on a kilogram of sugar from Sh100 to Sh300—a move farmers say will significantly increase production costs and undermine their already strained livelihoods.
BUTOS Chairperson Patrick Byamukama said the tax increment would have a direct negative impact on farmers, arguing that the burden is already too high.
Byamukama said the increment from sh100 to sh300 will translate into sh150,000 from the sh5,000.
He added that farmers are already heavily taxed, including through an 18% Value Added Tax, which he said indirectly affects them.
He warned that if Parliament passes the proposal, many farmers may be forced out of sugarcane growing.
Byamukama also noted that sugarcane farmers collectively contribute about Sh500 billion in taxes and called for broader consultation before introducing new fiscal measures affecting the sector.
Robert Atugonza, the Bunyoro-Tooro representative to the Uganda Sugar Industry Stakeholders Council and Chairperson of the Masindi District Sugarcane Outgrowers Association Limited (MASGAL), accused the government of misrepresenting the tax as being on sugar rather than on farmers.
Atugonza called on Parliament’s trade committee to critically review the proposal and urged the Bunyoro and Tooro parliamentary caucus to reject it.
Other farmers echoed similar concerns, with Barwane Batinire from the Kyenjojo Sugarcane Growers Association calling for a united front against the proposal.
Mary Mujumura from Masindi district urged MPs from both regions to urgently meet farmers and understand the potential impact before debating the bill in Parliament.
Phinehans Kyotasobora, Vice Chairperson of MASGAL, emphasized the need to involve technical experts from the Ministry of Finance, Ministry of Trade, and Parliament in ongoing consultations to ensure informed decision-making.
The farmers’ protests come as BUTOS, formed in July 2025, continues to position itself as a unified voice for sugarcane growers in Bunyoro and Tooro amid rising concerns over taxation and production costs in the sugar industry.
BUNYIRO AND TOORO SUGARCANE FARMERS REJECT PROPOSED SHS 200 EXCISE DUTY
