The Uganda Alcohol Industry Association, together with the gaming and betting alliance, opposed the new tax levies and measures that the government plans to impose on beer and gaming. PHOTO/FILE
The Uganda Alcohol Industry Association, together with the gaming and betting alliance, have opposed the new tax levies and measures that the government plans to impose on beer and gaming.
In separate presentations, the Nile Breweries Limited, whose major products are made using locally sourced items such as cassava, barley, and sorghum, opposed the 38 percent increase on their beer, saying this will lead to a decline in consumption and therefore lead to an increase in illicit alcohol on the market.
The tax proposal as contained in the Excise Duty (Amendment Bill 2025), seeks to increase the excise rate from 30 percent or Shs650 to Shs900 per litre, whichever is higher.
“Reverse the proposed tax rate increase and maintain the existing excise rate on beer from locally grown materials,” the Head of Legal and Corporate Affairs at the Nile Breweries, Mr Emmanuel Njuki, said.
Mr Njuki, who also serves as the Vice Chairman of the Uganda Association of Impact Association (UAIA), therefore advised that the government to explore alternative tax measures that would widen the tax base, as it also closes the loopholes that escalate illicit alcohol consumption in the country.
“Institute policy mechanisms to introduce excise at source for un-denatured ethanol. We believe the goal for government should be to tap into the current 65 percent illicit market as an opportunity to provide relief on the formal alcohol sector,” Mr Njuki told MPs on the Finance committee yesterday. The beer fraternity warned that if passed in the current form, the legislation “would push more consumers toward unsafe, untaxed products, eroding public health gains and government revenue.”
He added: “Beer prices could increase by up to 40 percent, reducing affordability and fuelling pressures and therefore leading to lower tax collections.” Relatedly, the gaming and betting alliance rejected the government plan to compel all operators of betting outlets to issue payouts through a centralised payments gateway system licensed by the Bank of Uganda. This proposal is contained in the Tax Procedures Code (Amendment) Bill, 2025.
Specifically, Section 5(1) of the Bill, which states that “an operator of a casino, gaming, or betting activity shall only receive a wager or money staked and only make payouts through the gaming and betting centralised payments gateway system licensed by the Bank of Uganda under the National Payment Systems Act.”
In a joint presentation on the proposal, the Chairperson of the Gaming and Betting Alliance, Mr Innocent Nahabwe, rejected the draft law, reasoning that it would lead to a monopolistic situation in the said sector.
“We believe that this amendment effectively grants a monopoly to a single entity for all betting payment aggregation, which poses significant risk and conflicts with established legal frameworks,” Mr Nahabwe said.
He added: “This amendment requires us to transfer customer personal identifiable information to a third party, which violates the Data Protection and Privacy Regulations, 2021.” He went on to disclose that “this compromises customer confidentiality and exposes sensitive trade secrets, jeopardising our business operations.”
The Finance Committee has been meeting several actors affected by the proposed taxes to get their proposals before the government makes a final decision. Among those they have met so far are the Uganda Manufacturers Association (UMA), Private Sector Foundation Uganda (PSFU), and tobacco manufacturers, among others.
The Finance Committee Chairperson, Mr Amos Kankunda, said they are getting proposals from all the affected entities before forging a way forward.
