Written By |
The move is expected to promote the use of locally produced ingredients in alcohol manufacturing, support domestic distillers, and boost the local economy
Search
Parliament
Parliament has passed the Excise Duty (Amendment) Bill, 2025, revising the excise duty on undenatured spirits, including neutral grain spirits (used in vodka production), cane spirit (used in rum), and grape spirit (used in brandy). These spirits, which are safe for human consumption, serve as bases for various alcoholic beverages.
The amendment introduces a significant reduction in excise duty, lowering the tax per liter from UGX 5,000 to UGX 1,500—a decrease of UGX 3,500—for undenatured spirits of 80% alcohol content that are prepared using locally sourced raw materials.
The move is expected to promote the use of locally produced ingredients in alcohol manufacturing, support domestic distillers, and boost the local economy. However, stakeholders in public health and taxation will be keenly watching its potential impact on alcohol consumption and government revenue.
Torch Media Africa
