Business 30 April 2026 Daily Monitor (Uganda)
Mukwano CEO Warns Proposed Excise Duty on Plastics Will Spike Living Costs and Spur Imports
Mukwano Industries CEO Tony Gadhoke has criticized the Excise Duty (Amendment) Bill, 2026, arguing that the steep $1,500 per tonne tax on plastics will raise prices of essentials like bread packaging, drive up living costs, and encourage plastic dumping from neighboring countries. Minority MPs echo concerns over taxes on key goods like sugar, cooking oil, and cement, fearing they will hinder business and construction. Source: https://www.monitor.co.ug/uganda/news/national/manufacturer-cries-out-over-proposed-excise-duty-on-plastics-5441730
A leading manufacturer has raised alarms over the government’s Excise Duty (Amendment) Bill, 2026, aimed at raising Shs722 billion annually.
Mukwano Industries CEO Tony Gadhoke warned that the proposed $1,500 per tonne levy on plastics—up from $70—would make packaging unaffordable, pushing up prices for basics like bread. He predicted this would lead to plastic dumping across Uganda’s borders and imports from EAC neighbors, creating an “explosive” waste crisis.
Gadhoke urged removing duties on imported cooking oil as raw material before taxing finished products, noting tax holidays favor new investors over established ones. He highlighted global tensions, like the US/Israel-Iran standoff, already inflating plastic prices by 40-80%.
The Bill broadens plastic taxes to cover single-use items like cups, bags, straws, and wraps to curb pollution, flooding, and align with EAC standards. It also hikes duties on spirits but spares recycled plastics if standards are met.
Minority Finance Committee MPs opposed taxes on essentials including sugar, cooking oil, cement (Shs1,000 per 50kg), and fuel (Shs1,750 per litre on gasoline), saying they inflate living costs and stall sectors like construction and transport. They called for a comprehensive tax policy rethink.
The Bill had its first reading on April 1, 2026, by the State Minister for Finance.
Source: Daily Monitor (Uganda)