The Uganda Alcohol Policy Alliance (UAPA) has expressed strong opposition to the government's recent proposal to reduce excise taxes on high-alcohol-content spirits.
In response, UAPA advocates for a significant increase in excise taxes on alcoholic beverages to address the escalating social and health issues associated with alcohol consumption.
Minister of State for Finance, Henry Musasizi, introduced the Excise Duty (Amendment) Bill, 2025, which seeks to revise excise duties on undenatured spirits. The proposed changes include:
Reduction of Excise Duty: Lowering the excise duty from 60% or UGX 5,000 per liter to 60% or UGX 1,500 per liter for undenatured spirits with an alcohol content of 80% or more made from locally produced raw materials.
Uniform Tax Rate: Implementing a uniform excise duty rate of 60% or UGX 1,700 per liter for both imported and locally produced spirits with an alcohol content below 80%.
Minister Musasizi justifies these adjustments by emphasizing the need to support local manufacturers and prevent revenue loss from undenatured spirits produced using locally sourced raw materials.
The Uganda Alcohol Policy Alliance (UAPA) has voiced strong opposition to the government's proposed tax reductions. UAPA argues that lowering excise taxes on alcoholic beverages could exacerbate the negative social and health impacts of alcohol consumption, including increased alcohol-related harm and public health issues.
In response, UAPA advocates for a substantial increase in excise taxes on alcoholic drinks as a strategy to:
Reduce Alcohol Consumption: Higher taxes are associated with decreased alcohol consumption, leading to improved public health outcomes.
Generate Revenue for Health Initiatives: Increased excise duties can provide additional government revenue, which can be allocated to health programs and services.
Deter Harmful Drinking Practices: Elevated prices may discourage excessive drinking and reduce alcohol-related harm.
Implications for West Nile Region
In regions like West Nile, where alcohol consumption is prevalent, the proposed tax reductions could have significant implications. Lower taxes may lead to increased availability and affordability of alcoholic beverages, potentially exacerbating existing social and health challenges in the area.
Conversely, implementing higher excise taxes could help mitigate these issues by reducing consumption and generating funds for local health initiatives.
The debate between the government's proposed tax reductions and UAPA's call for increased excise taxes highlights the ongoing tension between economic interests and public health priorities in Uganda.
As discussions continue, it is crucial to consider the long-term social and health impacts of alcohol consumption and to explore balanced approaches that support both economic development and public well-being.
