HOIMA CITY, April 21, 2026 — Sugarcane farmers in the Bunyoro and Tooro sub-regions, united under the Bunyoro Tooro Sugarcane Farmers Association [BUTOS], have expressed strong disapproval over government’s proposal to increase the excise duty on sugar from Shs 100 to Shs 300 per kilogramme.
The proposed hike is contained in the Excise Duty Amendment Bill 2026.
Following news of the planned increment, various sugarcane associations have begun convening meetings, hosting talk shows, and organising sensitisation campaigns to inform farmers and other stakeholders, with the aim of collectively opposing the tax.
They are calling for unity among sugarcane farmers and stakeholders in resisting the proposed increase.
On Monday, farmers from districts including Masindi, Kikuube, Kyenjojo, Kiryandongo and Hoima gathered at Kolping Hotel in Hoima City for an extraordinary meeting to strategise their response.
Patrick Byamukama, Chairperson of BUTOS, said the proposed tax increase would directly affect sugarcane farmers.
“The increment from Shs100 to Shs300 will translate into Shs150,000 from the Shs5,000 we have been paying on a 50kg bag of sugar, and Shs30,000 per tonne of sugar,” said Byamukama.
He argued that the proposal is unfair, noting that farmers are already burdened by other taxes, such as the 18 per cent Value Added Tax, which is indirectly passed on to them.
Byamukama warned that if Parliament approves the measure, farmers are unlikely to benefit given the already high cost of production.
“If it is approved, it is we the farmers who are going to suffer while the government benefits. We are going to petition the Speaker of Parliament, asking her to analyse and review this tax before it is passed,” he said.
He added that the government should exercise caution when introducing such measures, warning that excessive taxation could drive farmers out of business.
Byamukama reiterated that farmers would prefer maintaining the current Shs100 excise duty or reducing it to Shs 50.
“As sugarcane farmers in the country, we are already paying Shs 500 billion in taxes, which is too much. We should be thoroughly consulted before this tax is passed because it has significant implications for the farmer. We need to be given a chance to sensitise Members of Parliament on these implications,” he added.
Robert Atugonza, the Bunyoro Tooro representative to the Uganda Sugar Industry Stakeholders Council and Chairperson of Masindi District Sugarcane Outgrowers Association Limited [MASGAL], said the government’s claim that the tax targets sugar ultimately places the burden on farmers.
“I have moved across all sugarcane-growing regions in Uganda, and they are all rejecting this tax. The government should look at widening the tax base by including other crops and dairy products, rather than overburdening us,” he said.
He warned that farmers could suspend the supply of cane to sugar companies if the tax is passed.
Atugonza noted that the sugar industry employs many people directly and indirectly, stressing the need for careful handling to avoid its collapse if farmers are forced out of business.
He also urged the parliamentary committee on trade to handle the matter conscientiously, given its far-reaching implications.
“The government understands it generates substantial revenue from the sugarcane-growing industry, but it should address leakages. You may find some millers under-declaring or even not paying some taxes,” he said.
He called on farmers, the Bunyoro and Tooro parliamentary caucus, Parliament, and other stakeholders to strongly reject the proposed increment.
“We demand that Parliament looks into the plight of sugarcane farmers. We do not want to be treated like this after concluding the elections,” Atugonza said.
Mary Mujumura, a sugarcane farmer from Masindi District and a member of MASGAL and the Uganda National Sugar Growers Association [UNASGO], proposed an urgent meeting with Members of Parliament from Bunyoro and Tooro to help them better understand the implications of the tax and oppose it from an informed position.
Phinehans Kyotasobora, a sugarcane farmer and Vice Chairperson of MASGAL, emphasised the need to involve technocrats from the Ministry of Finance and Trade, as well as parliamentary technical staff, in sensitisation meetings.
BUTOS was formed in July 2025 to act as a unified voice for sugarcane farmers in the Bunyoro and Tooro sub-regions of Uganda.
Its primary goal is to strengthen farmers’ bargaining power and address low and inconsistent prices offered by sugar manufacturers.
The association brings together five existing organisations: Masindi Sugarcane Outgrowers Association Limited, Bwendero Sugarcane Outgrowers Association, Kyenjojo Sugarcane Farmers Association, Kiryandongo Sugarcane Farmers Association, and Hoima Sugarcane Outgrowers Association.
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