Civil society organizations (CSOs) are not raising a glass to recent decisions by the government to slash taxes on alcohol and tobacco. They argue that these cuts could lead to negative health outcomes for the country.
Expressing their concerns, CSOs highlighted that reducing taxes on alcohol could lead to increased consumption, particularly among young people and other vulnerable groups.
During a press conference at Kolping Hotel in Bwaise, Kampala, on Saturday, May 25, the CSOs appealed to President Yoweri Museveni to reconsider assenting to the Excise Duty Amendment Bill 2024, recently passed by Parliament. They called for a comprehensive review of these tax changes, especially concerning alcohol and tobacco products.
The recently passed bill aims to reduce excise duty on opaque beer from 20% or Sh230 per liter to 10% or Sh150 per liter. CSOs view this move suspiciously, especially considering Uganda’s long-standing struggle with health issues related to alcohol consumption.
The group, comprising the Uganda National Health Consumers Organisation (UNHCO), Uganda Health Communication Alliance (UHCA), and Uganda Alcohol Policy Alliance (UAPA), emphasized the need for higher taxes on alcohol and tobacco products, citing their negative social and health impacts.
Opaque beer, including locally brewed varieties like Chibuku, is a significant concern. Despite Parliament’s justification for tax reduction to support struggling companies, CSOs are skeptical, pointing out the lost tax revenue and the adverse effects of increased alcohol consumption.
Richard Tinkasimire Baguma of UHCA argued that higher taxes wouldn’t significantly affect government revenue due to the inelastic demand for alcohol and tobacco. Instead, it could deter young people from starting these harmful habits, ultimately reducing health risks and associated costs.
Mable Kukunda Musinguzi of UNHCO highlighted the alarming statistics on youth smoking initiation and tobacco-related deaths in Uganda, emphasizing the need for measures to curb these trends.
Margaret Nassanga of UAPA underscored that the government’s actions contradict Uganda’s international commitments on alcohol and tobacco control.
