The Uganda Alcohol Policy Alliance (UAPA) has thrown its support behind the government’s proposed increase in excise duty on undenatured spirits below 80% alcoholic content, welcoming a move that would see the rate rise from Shs1,700 to Shs3,500 per litre.
Juliet Namukasa, the chairperson of the alliance, said the measure was both timely and necessary.
“The proposed increase represents a strategic and evidence-based fiscal intervention aligned with Uganda’s domestic resource mobilisation agenda and public health priorities,” she said at Parliament after appearing before the Finance committee which was considering the government’s proposed tax amendment bills.
While welcoming the increase, Namukasa argued that a more comprehensive and sustainable alcohol taxation framework was needed to ensure long-term effectiveness and alignment with the National Development Plan IV objectives.
She proposed statutory provisions for automatic annual excise duty adjustments indexed to inflation and income growth, with mandatory upward revisions every three years to prevent the erosion of real tax value.
The aim, she said, was to ensure that alcohol does not become increasingly affordable relative to rising incomes, bringing Uganda in line with the World Health Organisation’s benchmark, which recommends that excise duties account for at least 70% of the retail price of alcohol.
Namukasa also called for the adoption of a graduated excise duty regime based on alcohol by volume, under which stronger beverages, including spirits and fortified wines, would attract proportionally higher rates than lower-ABV products such as beer and traditional brews.
“This will discourage harmful consumption patterns, reduce risks associated with high-strength alcohol and ensure that taxation reflects the public health externalities of different beverage categories,” she said.
On revenue allocation, Namukasa proposed that a defined percentage of alcohol excise revenues be earmarked for health equity programmes, with priority given to mental health services, addiction treatment and rehabilitation, as well as cancer treatment and prevention.
She said this would allow excise taxation to serve a dual fiscal and social purpose while strengthening Uganda’s health system.
The alliance also urged enhanced government regulatory oversight of all ethanol-containing beverages to protect public health and prevent underage access.
Namukasa called for strengthened joint operations between the Uganda Revenue Authority (URA) and the Uganda National Bureau of Standards (UNBS), alongside other law enforcement agencies, to ensure the licensing and registration of all alcohol producers and distributors, including small-scale distillers.
The committee chairperson, Amos Kankunda, said they would engage other stakeholders, including the URA and UNBS, to discuss the way forward.
