Sugar Confectionery Products in Uganda No Longer Taxable

Sugar Confectionery Products in Uganda No Longer Taxable
  • The constitutional amendment in Uganda is changing key tax provisions in the country

Sugar confectionery products in Uganda will no longer be subject to taxation. This new order is coming after the Ugandan Parliament passed the Excise Amendment Bill.

The bill passed earlier in March 2022 will now waive taxes on sugar confectionery like gums, chocolates, and sweets amongst other products derived from sugar.

Recall that President Yoweri Museveni during the earlier passage of the bill in March 2022 has written the legislative arm of government for reconsideration and is now passed as the extant law.

The bill as of March 2022 proposed a 20 percent excise duty on sugar products but the president had proposed a reversal as carrying on with the 20 percent excise duty will increase the cost of production.

President Museveni submitted that the worst-hit of a decision to introduce a 20 percent excise duty will be local manufacturers, preventing a timely recovery from the economic ruins posed by Covid-19.

In bringing the new bill to reality, the president had the help of the Committee on Finance, Planning and Economic Development who accepted the need for the tax waiver to support the government’s initiative to grow the local industry.

Sugar Confectionery Products in Uganda No Longer Taxable
President Yoweri Museveni

Sugar Confectionery Products in Uganda: Other Legislative Changes

Still on tax matters, the Members of Parliament rejected a proposed 40 percent Excise Duty equivalent to an Shs4,000 per kilogramme charge of plastics and plastic granules.

The rejected excise duty is away from the current 2.5 per cent charge equivalent to Shs266 per kilogramme of plastics and plastic granules.

MP’s argument for rejecting the proposed excise duty was based on the lack of conviction to shield proposed beneficiaries which represented 93 percent of taxpayers in the tax net from paying taxes

Away from the waiver on sugar confectionery, the parliament considered other bills like; Seven other bills, including the Trustees Incorporation (Amendment) Bill, the Companies (Amendment) Bill, the Insolvency (Amendment) Bill, the Partnerships (Amendment) Bill, the Anti-Terrorism (Amendment) Bill, the Cooperatives Societies (Amendment) Bill and the Anti-Money Laundering (Amendment) Bill.

Uganda’s House of Parliament

Follow us on Twitter for more update


The information contained herein is general and is not intended, and should not be taken, as legal, accounting or tax advice provided by Taxmobile.Online Inc to the reader. This information remains strictly the opinion of Taxmobile.Online Inc.

The reader also is cautioned that this material may not apply to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of other tax factors if any action is to be contemplated. The reader should contact his or her Tax Advisers before taking any action based on this information.

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Taxmobile.Online Inc.