BREAKING NEWS!! Government Removes Tax On Beer, Now You Can Enjoy As You Wish But Responsibly

In an exciting new development, the Government of Uganda has removed excise duty on beer made from locally grown barley. This important decision was announced by Finance Minister Matia Kasaija during the 2025/26 National Budget Speech at Kololo Independence Grounds. The change is a big win for farmers, beer producers, and supporters of Uganda’s industrial growth.

For years, barley farmers in places like Kapchorwa, Kabale, Kisoro, and parts of the Elgon region have grown barley under contract with big brewing companies. But even though this barley was locally grown, beer made from it was taxed the same way as beer made from imported ingredients.

This made it harder for farmers and breweries to fully benefit from using Ugandan raw materials. Now, the government has changed the rules. Beer made from Ugandan-grown barley will no longer be taxed under the previous excise duty, making it cheaper to produce and more attractive for brewers.

This is a big step in the right direction for Uganda’s agriculture and manufacturing sectors. Finance Minister Kasaija explained that the tax system was being changed to promote fairness and encourage local sourcing. The government has also harmonised excise duties for all beers made from at least 75% local ingredients.

This means there will now be a uniform tax rate, which supports local production and stops companies from being punished for using Ugandan-grown inputs. Farmers are celebrating the change. Mary Chemusto, a barley farmer from Kween District, said this was the kind of support they had been waiting for.

“Now we can farm with confidence, knowing our crops are economically viable and protected,” she said. The removal of this tax gives hope to many farmers who can now expect better demand and more stable prices for their barley. Beer producers like Uganda Breweries Limited and Nile Breweries have also welcomed the news.

They believe this change will make Ugandan beer more competitive not only at home but also in markets across East Africa and Africa under the African Continental Free Trade Area (AfCFTA).

It also supports the government’s “Buy Uganda, Build Uganda” (BUBU) strategy, which aims to grow the local economy by using more local products. The 2025/26 budget has many large figures, like UGX 62 trillion in spending and a 7% growth target. But it’s the smaller, targeted changes like this one that could have the biggest impact.

This policy is expected to boost job creation, improve incomes for farmers, and encourage companies to invest more in Uganda’s economy. The government says this tax reform is part of a bigger plan to transform Uganda into a more self-reliant and industrialised country.

By supporting those who add value locally and create jobs, Uganda is showing that it is serious about building a stronger, fairer, and more productive future. In simple terms, Uganda has just turned a beer tax into a tool for national growth—and that’s something everyone can raise a glass to.