Bar owners will feel a pinch after the 2017/18 budget read by Finance minister Matia Kasaijja this afternoon, indicated an increase in both international and locally made beer brands.
This means beer prices will increase severely.
According to minister Kasaija, Malt beer will see a 60% increase in excise duty, about 1,860 shillings per liter. Beer with 75% of local raw material will have an increase of 30%, or 650 shillings per liter.
Beer from barley grown in Uganda will also witness an increase by 30% of excise duty, or p50 shillings per liter.
Also, an increase of excise duty on spirits made from local materials is by 60% and other spirits, by 80%. Indentured spirits, usually raw materials increase by 100%, or 2500 shillings per liter.
Non alcoholic drinks excluding fruit and vegetable juice will also have a 13% increase in excise duty or 240 shillings per liter.
Juice made from more than 70% imported pulp, will see a 13% increase in excise duty or 300 shillings per liter.
Meanwhile, specialized hospital beds go tax free, as well as all beds manufactured with local materials. However, furniture assembled and imported, will see a 20% excise duty increase. VAT has also been dropped off menstrual cups and agricultural insurance premiums.
