Sugarcane farmers in Bunyoro and Tooro urge MPs to reject proposed sugar tax hike
Robert Atugonza, the Bunyoro-Tooro representative on the Uganda Sugar Industry Stakeholders Council and chairperson of the Masindi District Sugarcane Outgrowers Association Limited (MASGAL), accused the government of misleading farmers.
By George Niyonzima
Sugarcane farmers from the Bunyoro and Tooro regions, under their umbrella body the Bunyoro Tooro Sugarcane Farmers Association, have urged Members of Parliament to reject the proposed Shs300 excise duty per kilogram of sugar, warning that it will severely affect their livelihoods.
The proposed tax, contained in the Excise Duty Amendment Bill 2026, represents a sharp increase from the current Shs100 levy on a kilogram of sugar.
Farmers from districts including Masindi, Kikuube, Kyenjojo, Kiryandongo, and Hoima convened an extraordinary meeting at Kolping Hotel in Hoima on Thursday evening to coordinate their response to the planned tax increment.
They argue that tripling the excise duty will have a direct negative impact on sugarcane growers, despite government assurances that the tax is imposed on sugar rather than raw cane.
BUTOS chairperson Patrick Byamukama said the proposed increase is unfair, noting that farmers are already grappling with multiple tax burdens, including the 18 percent Value Added Tax, which he said indirectly affects them.
“If this tax is approved, farmers will not benefit at all, given the already high cost of production,” Byamukama said, cautioning that excessive taxation could force many growers out of the industry.
Robert Atugonza, the Bunyoro-Tooro representative on the Uganda Sugar Industry Stakeholders Council and chairperson of the Masindi District Sugarcane Outgrowers Association Limited (MASGAL), accused the government of misleading farmers.
“They say the tax is on sugar, but in reality, it is the farmer who suffers the consequences,” he said.
Farmers also called for a united front among stakeholders to oppose the proposal. Moses Balwana Batinire of the Kyenjojo Sugarcane Growers Association urged collective action to push back against the tax increment.
Meanwhile, Mary Mujumura, a sugarcane farmer from Masindi and member of both MASGAL and the Uganda National Sugarcane Growers Association, proposed convening an urgent meeting with MPs from Bunyoro and Tooro.
She said this would help legislators better understand the implications of the tax on farmers and enable them to oppose it from an informed position on the floor of Parliament.
The farmers maintain that while government may be seeking to increase revenue, the proposed tax risks undermining the very agricultural base that sustains the sugar industry.
