Bunyoro, Tooro farmers urge dialogue over proposed sh300 sugar tax

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Sugarcane farmers from the Bunyoro and Tooro sub-regions are urging government and Parliament to prioritise consultation and stakeholder engagement before deciding on the proposed sh300 excise duty on sugar, arguing that inclusive dialogue will help shape a fair and sustainable tax framework for the sector.

Operating under their umbrella organisation, the Bunyoro Tooro Sugarcane Farmers Association (BUTOS), the farmers emphasise that meaningful consultation will allow them to sensitise Members of Parliament on the implications of the tax and ensure informed decision-making.

This proposed tax marks a significant increase from the current sh100 excise duty charged on a kilogram of sugar.

Members of Bunyoro Tooro Sugarcane Farmers Association (BUTOS) attending the extraordinary meeting to discuss the proposed tax. (Photo by Yosam Gucwaki)

On April 20, 2026, sugarcane farmers from districts including Masindi, Kikuube, Kyenjojo, Kiryandongo and Hoima convened an extraordinary meeting at Hoima Kolping Hotel to discuss the proposed measure and chart a way forward.

The government's proposal to triple the excise duty on sugar, outlined in the Excise Duty Amendment Bill 2026, is viewed by farmers as highly detrimental to their livelihoods.

According to Patrick Byamukama, the chairperson of BUTOS, the proposed tax increment will directly impact sugarcane farmers.

"The increment from sh100 to sh300 will translate into sh150,000 from the sh5,000 we have been paying on a 50kg bag of sugar, and sh30,000 per tonne of sugar," said Byamukama.

He added that this is unfair, as farmers are already burdened by various taxes, such as the 18% Value Added Tax, which is also indirectly imposed on them.

Byamukama stated that if this tax is approved by Parliament, sugarcane farmers will not benefit at all, given the already high cost of production.

"If it's approved, it's we, the farmers, who are going to suffer while the government benefits. We are going to petition the Speaker of Parliament, asking her to first analyse and review this tax before it's passed," he said.

He emphasised that the government needs to be cautious when introducing such taxes, noting that excessive taxation on sugarcane farmers could lead to their exit from the business.

Farmers push back

Byamukama further noted that farmers are comfortable maintaining the sh100 excise duty that the government has been charging per kilogram of sugar.

"As sugarcane farmers in the country, we are already paying sh500 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 the Members of Parliament on the implications of this tax," he added.

Robert Atugonza, the Bunyoro Tooro representative to the Uganda Sugar Industry Stakeholders Council and chairperson of the Masindi District Sugarcane Outgrowers Association Limited (MASGAL), noted that the government is misleading them by claiming the tax is on sugar, explaining that ultimately it is the farmer who will suffer.

Sugarcane farmers from Bunyoro and Tooro after their extraordinary meeting in Hoima city. (Photo by Yosam Gucwaki)

"I have moved across all the sugarcane-growing regions in Uganda, and they are all rejecting this tax. The government should look at widening the tax base by bringing on board other crops and also dairy, rather than overburdening us," he said.

He noted that the sugar industry employs many people, both directly and indirectly, and therefore needs to be handled with care to prevent its collapse should farmers be eliminated from the sugarcane growing business.

He requested the parliamentary committee on trade to champion this issue with consciousness, as it is likely to significantly affect farmers.

"The government understands that it is getting a lot of revenue from the sugarcane growing industry, but it should look at the leakages. You may find some millers under-declaring or even not paying some taxes," he said.

He called upon farmers, the Bunyoro and Tooro parliamentary caucus, Parliament and all other stakeholders to strongly reject this tax increment.

"We demand that Parliament looks into the plight of sugarcane farmers. We don't want to be thanked like this after concluding the elections," Atugonza argued.

Barwane Batinire from the Kyenjojo Sugarcane Growers Association called for a collective voice from all stakeholders to effectively address the proposed tax increment.

Mary Mujumura, a sugarcane farmer from Masindi district and a member of MASGAL and the Uganda National Sugarcane Growers Association (UNASGO), proposed that an immediate meeting for Members of Parliament from Bunyoro and Tooro be convened to help them understand the implications of the tax increment on farmers, enabling them to take an informed position on the floor of Parliament.

Phinehans Kyotasobora, a sugarcane farmer and vice chairperson of MASGAL, underscored the need to involve technocrats from the finance and trade ministries as well as parliamentary technical staff in sensitisation meetings.

Call for reforms

During the same meeting, farmers also called for a review of the Sugar Act, particularly the clauses concerning pricing.

"Other sections are operational apart from the cane price formula, which they say should become effective two years after the law has been gazetted. It's the first experience in Uganda to have a law that should be implemented in bits and pieces," Kyotasobora argued, adding that it must be fully implemented, which calls for its review and approval by Parliament and the President.

He said that in its review, it should be clear that the value of by-products like power, bagasse, fertilisers and spirits, among others, generated from sugarcane, should also be considered when determining the sugarcane price.

The Bunyoro Tooro Sugarcane Farmers Association (BUTOS) was formed in July 2025 to act as a unified voice for sugarcane farmers in the Bunyoro and Tooro sub-region.