Strengthening Alcohol Taxation for Public Health and Youth Protection

Strengthening Alcohol Taxation for Public Health and Youth Protection

On 24th April 2025, the Uganda Youth Development Link (UYDEL) had the privilege of appearing before the Parliamentary Committee on Finance and Trade to present a formal submission on the Excise Duty (Amendment) Bill, 2025/2026.

Our presentation highlighted the urgent need to strengthen alcohol taxation as a dual strategy to safeguard public health and mobilize sustainable domestic revenue. Despite commendable efforts by government, Uganda’s excise duty rates on alcoholic beverages remain relatively low when compared to regional benchmarks. For example, the current proposed excise duty on beer (30% or UGX 900 per litre) falls short of Kenya’s 35% or South Africa’s 36% average.

UYDEL, alongside our partners at the Uganda Alcohol Policy Alliance (UAPA), submitted recommendations grounded in global evidence and aligned with WHO guidelines. These included:

Raising the excise duty on beer to 35% to reduce harmful consumption and align with regional standards.

Introducing Minimum Unit Pricing (MUP) to set a floor price for alcoholic beverages and protect young people from low-cost, high-risk products.

Adopting a volumetric taxation model based on alcohol content to promote fairness and reduce consumption of stronger alcoholic beverages.

Enhancing enforcement to curb illicit trade and industrial ethanol diversion.

The committee welcomed our evidence-based approach, which emphasized that taxation is not solely a fiscal tool, but a critical policy instrument for reducing alcohol-related harm — a concern that costs Uganda both lives and economic productivity.

We thank Parliament for the opportunity to contribute to this crucial policy process and reaffirm our commitment to supporting reforms that prioritize the well-being of our communities.