Ugandans should brace for higher prices on a range of consumer goods after the government announced new and increased taxes as part of the 2026/27 national budget.
Presenting the budget before Parliament, Finance Minister Henry Musasizi revealed that Parliament had approved several tax measures under Value Added Tax (VAT), excise duty and stamp duty aimed at boosting domestic revenue.
Among those likely to feel the impact most are alcohol consumers, following a sharp increase in excise duty on alcoholic beverages.
The excise duty on spirits and alcoholic drinks, including Uganda Waragi, Black Label, cognac and Amarula, has been raised from Shs1,700 to Shs3,500 per litre, a move expected to generate an additional Shs85 billion for the government.
Beyond alcohol, the new tax measures will also affect fuel, cement, sugar, cooking oil, paint, plastics and motorcycles, potentially pushing up the cost of living and doing business.
The changes come as the government intensifies efforts to increase local revenue collection and reduce reliance on borrowing and external financing.
Musasizi said the measures are expected to generate hundreds of billions of shillings needed to support the government’s development agenda.
The minister also disclosed that Uganda’s public debt had reached USD34.86 billion (approximately Shs126.19 trillion) by December 2025.
According to the Finance Ministry, external debt accounted for USD15.84 billion, while domestic debt stood at USD19.02 billion, bringing the country’s debt-to-GDP ratio to about 53 percent.
The tax measures form part of the Shs84.39 trillion budget for the 2026/27 financial year, the largest in Uganda’s history.
Government says increased domestic resource mobilisation will be critical in financing its long-term ambition of transforming Uganda into a US$500 billion economy over the coming decades.
For consumers, however, the new taxes are likely to translate into higher prices on several everyday products, with drinkers expected to be among the hardest hit.
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