Catching an ice-cold bottle of your favorite beer brewed using local raw materials will, in the next financial year, come with a deep leak into the pockets of many Ugandans once the government proposal to levy huge taxes is passed.

On Thursday, April 3rd, 2025, Henry Musasizi, the Minister of State for Finance, while appearing before Parliament’s Finance Committee to present the seven tax bills, plans to increase taxes on cigarettes and beers manufactured from local raw materials in order to generate Shs 19.40 billion in the new financial year.

Minister Musasizi said the government has been under pressure from players in the health sector to have the tax on tobacco increased so as to reduce the health risk associated with smoking in Uganda.

The plan involves increasing excise duty on beer manufactured from local raw materials from the current Shs650 to Shs900, saying this is intended to reflect the current economic conditions and inflation.

He further revealed that the 2025/26 tax measures proposed in the Seven Tax Bills and the Uganda Revenue Authority Administrative measures are projected to generate revenue over Shs2.4 trillion to finance the national budget.

Minister Musasizi had led the government side to defend the proposals contained in the tax bills.

Once approved, the proposal will surely lead to the increase in the price of beer like Eagle Lager, Ngule, Senator Lager, Bell Lager, and St. Louis that is brewed using barley malt and Uganda’s home-grown Epuripur sorghum, cultivated for this purpose, promoting the use of local sorghum.

In Uganda, Nile Breweries Limited (NBL) is the leading beer manufacturer, using locally grown barley, sorghum, maize, and cassava to produce beers.