Ugandans are not loving what is coming from government; especially the recent proposals to increase taxes on fuel, sorghum beer, cooking oil and most importantly, local wines and spirits.
Global Status on Alcohol and Health 2014 report indicates that Uganda is the highest consumer of alcohol per capita in the East African region with 23.7 litres of pure alcohol being consumed per capita annually.
The proposed increments are detailed in the Excise Duty Amendment Bill 2018 which was presented to Parliament for approval.
The amendment bill proposes a 30% charge on wine which is produced from local raw ingredients and an alarming 80% on other wines – similarly, an 80% tax was proposed on ready to drink spirits.
A tax of 60% has been proposed for undenatured spirits made from locally produced ingredients and a 100% tax on undenatured spirits made from imported raw ingredients.
In February this year, Nile Breweries Limited dragged Uganda Revenue Authority (URA) to the Tax Appeal Court over the commissioner slapping excise duty taxes on one of their low-cost beer, Chibuku, which had earlier been granted tax exemption.
The new tax amendment proposes a 30% tax on opaque beers and low-cost beer brands on the market, including Chibuku.
A CNN study in 2015 ranked Uganda among World's 10 best drinking nations -- it was in the 8th position ahead of Germany.