Uganda's 2016-17 budget specifies an increase in the excise duty on cement to US$0.29 (€0.26) for a 50kg bag, from $0.15 at present.
Excise duties on a number of other items including petrol and motor lubricants are also being increased.
The move is intended to support higher government expenditure, but industry figures warn that this could increase market prices while reducing consumer demand and investments.
One hardware dealer said that local dealers are already making margins of just $0.05/bag as cement is a very price sensitive product among retail buyers.
