Civil society want tax on tobacco tripled

Civil society organisations under the Uganda Tobacco Taxation Coalition have proposed that government should increase tax on tobacco and related products to 80 percent.

The proposal, if implemented, will mean that tax on such products will almost triple from the current 35.

The proposal comes when the current 35 percent tax on tobacco products is below the World Health Organisation recommended rate of 70 percent.

Speaking during a stakeholder meeting on tobacco taxation, Ms Mable Kukunda, the Uganda National Health Users/Consumers' Organisation senior advocacy and networking officer, said imposing more tax on cigarettes will not only improve government’s revenue but will reduce the negative impact of such products on Ugandans.

“As a coalition, we propose that government increases taxes on both hinge lid and soft cap. Tax on hinge lid should be increased from Shs75,000 to Shs200,000 per 1,000 cigarettes, while tax on soft cap cigarettes should be increased from Shs55,000 to 150,000 per 1,000 cigarettes,” she said.

Ms Kukunda indicated that the current rate falls below international requirements, noting that it was important that government uphold its commitment to policies under World Health Organisation.

Therefore, she noted there was need for government to implement the tax procedure code to curb entry of illicit tobacco and related products by including tobacco transactions in EFRIS, while at the same time urging Uganda Revenue Authority to work with Uganda National Bureau of Standards to implement tax procedure code and environmental levy.

Dr Jim Arinaitwe, the Centre for Tobacco Control in Africa country Manager, said Uganda scores poorly in cigarette price tax share and structure in both mid-range and affordability.  

“The country would benefit from higher cigarette prices and increased tax share as this reduces cigarette availability,” he said.

According to Tobacco Economics Study, Uganda’s overall score of tobacco and related availability is lower than East Africa’s and the global average.

“Uganda's overall score increased from 2014 to 2022. In that time, the cigarette affordability reduced while the tax share of price score decreased,” the study shows.