The government has presented the Excise Duty (Amendment) Bill, 2025 to Parliament, proposing new taxes on locally produced alcohol.
The bill, tabled by State Minister for Finance (General Duties), Hon. Henry Musasizi on Tuesday, 04 February 2025, seeks to impose a tax of Shs1,500 per litre on un-denatured spirits with an alcohol strength of 80% or more when made from locally produced raw materials.
Additionally, it introduces a tax of Shs1,700 per litre on spirits with an alcohol content below 80%.
Un-denatured alcohol, a pure form of ethanol not mixed with other substances to make it unfit for consumption, is widely used in medicine, science, and manufacturing.
The proposed taxes aim to increase government revenue and regulate the alcohol industry.
At the same parliamentary sitting, chaired by Deputy Speaker Thomas Tayebwa, the government also tabled the Income Tax (Amendment) Bill, 2025, which seeks to extend the tax exemption for the Bujagali Hydro Power Project until 30 June 2025.
Musasizi urged Parliament to expedite the bill’s approval within two weeks.
These new tax measures reflect the government’s efforts to strengthen domestic revenue collection while managing exemptions and regulatory policies in key economic sectors.
