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URA issues stern warning to illicit alcohol producers

November 16, 2022 10:21 AM

The Uganda Revenue Authority (URA) commissioner general, John Musinguzi Rujoki, has issued a stern warning to producers of illicit alcohol. Musinguzi said the revenue collecting body has formed a new enforcement team dedicated to curbing the proliferation of artisanal illicit alcohol in the country, which is eating into the market share of established brewers.

Illicit alcohol in Uganda commands a market share of 64.5%, which, according to Uganda Breweries managing director Andrew Kilonzo, has led to a loss of an estimated Government revenue of sh1.6 trillion

“It’s time to work together and redeem the 64.5% market share that goes to illicit alcohol. I believe that as the URA team, our role is cut out. We are going to clump on illicit. I enjoyed the whole tour until when we were winding up and then I saw many crates of alcohol outside, I was told the alcohol can’t be consumed because of low consumption,” he said.

The managing director Uganda Breweries, Andrew Kilonzo, echoed the need for strong laws that would help do away with illicit alcohol products.

“We need laws that protect our products from illicit and counterfeit products which leads to loss of Government revenue estimated at 1.6 trillion annually. We are more than willing to work with the revenue body to help curb the people behind them,” he said.

Kilonzo said that illicit alcohol products command a market share of 64.5% which a lot.

Musinguzi encouraged brewers to share any kind of information they may have about the people behind the illicit alcohol products, promising that action would be taken with immediate effect. He was speaking after commissioning a sh17b new logistics warehouse and emptying a hardstand and filtration facility, in Luzira.

Uganda Breweries, according to URA, is the third largest taxpayer in the country