Uganda has raised import duties on a number of products under the 2026/27 budget, with the changes targeting goods that compete with locally manufactured products, new measures which mean that importers of selected aluminium, steel and other products will have to pay significantly more at the border.
The policy is intended to make locally produced goods more competitive and encourage domestic manufacturing, and also push the government agenda of buy Uganda, build Uganda (BUBU).
According to Uganda Revenue Authority (URA) Commissioner General John Musinguzi Rujoki, the 2026/27 budget contains specific measures “aimed at protecting local industries.”
The changes cover nine categories of products, with some moving to a 35% import duty while others will attract a combination of percentage-based charges and minimum amounts per metric tonne.
For aluminium products, the changes are particularly notable. Imported aluminium tables, kitchen or household articles and their parts will now attract a 35% import duty instead of 25%
Aluminium foil and containers made from aluminium will also attract 35% up from 10%.
The government has gone even further with stainless steel tubes. These products, which previously attracted zero import duty, will now face a 35% charge.
Boxes, cases, crates and similar articles, including dustbins and crates, will also attract a 35% import duty instead of 25%.
The steel sector has received another set of changes. Imported iron and steel products of high-speed steel will attract an import duty of 25% or $350 per metric tonne, whichever is higher.
Peas will attract 35% or $250 per metric tonne, whichever is higher, while steel wire rods will also attract 35% or $250 per metric tonne, whichever is higher.
Other products affected, according to Mr Rujoki, include rulers, whose import duty has increased from zero to 10%, and rubber, whose rate has risen from 10 to 25%.
Musinguzi’s explanation gives the changes a wider economic meaning. Rather than being viewed simply as additional taxes on importers, the measures are designed to influence what businesses choose to import and what they can produce locally.
In practical terms, a higher import duty increases the cost of bringing an affected product into Uganda. An importer can absorb the additional cost, accept a lower profit margin or pass part of the cost to consumers through a higher selling price.
That is where the policy becomes significant for ordinary Ugandans.
If a product manufactured in Uganda is competing against a cheaper imported alternative, the higher duty may narrow the price gap and give the local producer an opportunity to win more customers.
But the policy also carries risks. Where Uganda does not have enough local production to satisfy demand, higher import duties could simply make the imported alternative more expensive.
The same concern applies to manufacturers that depend on imported materials. If the products being taxed are inputs for local production, manufacturers could see their costs rise and may eventually pass those costs on to consumers.
This is why the success of the policy will depend on what happens after the tariff changes take effect. If local manufacturers increase production, improve quality and maintain competitive prices, the measures could support industrial growth.
Musinguzi said the budget measures are intended to protect local industries, but the bigger objective is likely to be creating conditions in which domestic businesses can compete more effectively.
The tariff changes therefore represent more than a customs adjustment. They are part of government’s attempt to use taxation as an economic tool, making selected imports less attractive while creating greater space for Ugandan manufacturers.
