BAT and URA in Joint Effort to Combat Cigarette Smuggling

(Kampala) – The Uganda Revenue Authority (URA) and British American Tobacco (BAT) have teamed up to address the growing problem of illicit cigarette trade in Uganda. Both parties recently met to discuss measures to curb the rise in smuggled cigarettes, which BAT states is impacting local revenues and enabling illegal sales.

BAT’s team, led by Chris Achola, Cluster Head of BAT East and Southern Africa, met URA officials at their Nakawa headquarters to discuss various proposals for tackling the issue. BAT highlighted a range of strategies they believe could help reduce illegal cigarette trade, including the destruction of seized cigarettes, enforcing labeling regulations, implementing Digital Tax Stamps (DTS), and tightening controls on manufacturing and supply chains.

Achola shared statistics that underscored the scale of the problem. In Uganda, illicit cigarette trade has grown significantly, from 15.8% in late 2019 to 34.1% in the second quarter of 2023. “One in every three cigarettes smoked in Uganda is not taxed or is sold illegally,” Achola said, emphasizing the need for stronger action to address this alarming trend.

URA Commissioner General John R. Musinguzi expressed concern over the impact of cigarette smuggling on government revenue. He pledged the authority’s commitment to supporting efforts to reduce illegal sales and praised BAT for its proposals. Musinguzi also announced that URA would soon publicly destroy seized cigarettes as part of its efforts to deter smuggling and apply strong penalties to anyone caught transporting or selling illegal cigarettes.

In addition, Musinguzi stated that URA would work closely with stakeholders in the cigarette manufacturing and distribution chains before rolling out stronger enforcement measures. URA’s enforcement teams will impound any vehicles found transporting smuggled cigarettes, with plans to confiscate these vehicles to help curb illicit trade.

Godson Mwesigye, URA’s Assistant Commissioner of Enforcement, also weighed in, noting that URA will soon require Ugandan cigarette manufacturers to batch and label cigarette packs with identifiable batch numbers. URA aims to use these batch numbers as part of a DTS tracking and tracing solution, which will allow authorities to better monitor cigarette sales and prevent illegal distribution.

BAT commended URA’s enforcement teams for their ongoing efforts to intercept smuggled cigarettes and emphasized the need for continued collaboration to eliminate the illegal trade in cigarettes.