Parliament has reconsidered the Excise Duty (Amendment) Bill, 2026 after President Yoweri Museveni returned it for review, ultimately retaining the existing excise duty rate on single-use plastics while widening the range of products subject to the levy.
Parliament had initially passed the Bill in April proposing a steep increase in excise duty on sacks and bags made from polymers of ethylene and other plastics, from the current 2.5 per cent or USD 70 (about 262,000 Shillings) per tonne, whichever is higher, to 25 per cent or USD 1,500 (about 5.6 million Shillings) per tonne.
The original proposal also sought to extend the tax to a wider range of disposable plastic products, including cups, lids, plates, cutlery, sachets, bottles, straws, stirrers, cling films, wraps, jars and similar single-use items as part of the government’s broader environmental protection agenda.
However, President Museveni argued that such a sharp increase would significantly raise production costs for manufacturers at a time when Uganda still lacks affordable alternatives to many plastic products.
Instead, he proposed maintaining the current tax rate while broadening its application to plastic granules used in the manufacture of single-use plastics and a wider range of disposable products. He also recommended exempting multi-use plastics and specialised packaging, including vacuum food packaging, as well as packaging for juice, tea, coffee and sanitary pads.
The Committee on Finance, Planning and Economic Development, chaired by West Budama West MP Maximus Ochai, endorsed the President’s recommendations, and concluded that implementation of the proposed 25 per cent excise duty should be deferred until government conducts a comprehensive assessment of its likely impact on the plastics industry.
“The proposal represents an expansion of the tax base while improving the legal certainty necessary for tax compliance. It also advances the government’s environmental objectives by capturing a wider range of plastics commonly discarded after a single use,” the committee noted.
According to the committee, the revised proposal is expected to generate approximately 3 billion Shillings in additional annual revenue while reducing disputes arising from ambiguities in the current law.
The committee further directed the Ministry of Finance to undertake comprehensive impact studies within six months and report its findings back to Parliament. During clause-by-clause consideration of the bill in Parliament today, MPs adopted amendments retaining the existing excise duty of 2.5 per cent or US$70 per tonne.
Despite broad support for the committee’s recommendations, Opposition legislators challenged both the substance of the amendments and the legality of Parliament reconsidering the Bill. In a minority report signed by Paul Mwiru (Jinja East), Hassan Kirumira (Katikamu South), Brenda Nabukenya (Luwero District Woman MP) and Gyaviira Ssemwanga (Buyamba County), the legislators argued that the 12th Parliament lacks constitutional authority to reconsider legislation passed by the dissolved 11th Parliament.
Citing Rule 215 of Parliament’s Rules of Procedure and rulings delivered in 2021 by the late Speaker Jacob Oulanyah, they maintained that legislation passed before the dissolution of Parliament cannot be revived by a successor Parliament. “It is irregular to consider Bills that were already passed by the 11th Parliament before it was dissolved.
These Bills were passed and were not pending before either the House or a committee,” the minority report states. The dissenting MPs argued that the returned Bills should instead be reintroduced through the normal legislative process, beginning with First Reading. Beyond the procedural objections, the minority also criticised what it described as the government’s inconsistent approach to regulating plastics.
The report traces repeated policy shifts, from import bans and phased prohibitions introduced in the 1990s, successive tax increases in the 2000s, partial exemptions, and the current excise duty regime introduced in the 2023/24 financial year, arguing that governments have alternated between strict regulation and policy reversals without relying on comprehensive evidence. “Government’s position on single-use plastics is fluid, impulsive and not informed by any comprehensive study,” the minority concluded.
The Opposition legislators estimated that retaining the lower excise duty could cost the government as much as 208 billion Shillings in potential revenue compared to Parliament’s earlier proposal. Uganda’s efforts to curb the use of single-use plastics have stretched for nearly two decades. Repeated attempts to ban or heavily tax kaveera have largely been undermined by weak enforcement, continued cross-border trade, the limited availability of affordable environmentally friendly alternatives, and resistance from manufacturers concerned about the potential impact on jobs and production costs. URN