Minister speaks out against Alcohol Bill

The Alcoholic Drinks Control Bill, 2023 that is currently under scrutiny before a House Committee has continued to divide opinion, with a government minister the latest person to pour cold water on it.

Mr Martin Mugara, the junior Tourism minister, on Thursday told the House Committee handling the Bill, that if passed in its current state the legislation will inflict irreparable damage.

“Some of the regulatory regime stipulated in the Bill may negatively affect the tourism sector. Section 14(3), which regulates time of sale of alcoholic drinks, is potentially detrimental to some of the tourism products, including the night economy,”  minster Mugara said.

He added: “The Bill also seeks to introduce a host of licences and taxes. Imposed taxes and fees, including trading licence, signpost licence, billboard licence, occupational and health licence, medical examination fees, advertising fees alternation licence, restaurant licence, bar licence, liquor licence, events and entertainment licence will stifle the businesses in the industry if passed in its current form.”

The junior Tourism minister said the sector he oversees—the country’s largest forex earner—can ill afford being set on the back foot again after the pandemic took wind out of its sails. His frustrations with the Bill majorly lie in Clause 5(7), which stipulates conditions that premises involved in the business chain of alcoholic drinks should not be within a 400-metre distance of a place of worship, health facility, school, and or residential area. The premises within the business chain of the manufacture, distribution and sale of the alcoholic drinks should not also be at a fuel station, the Bill further adds much to the chagrin of Minister Mugara.

“The Bill is silent on tourism accommodation facilities. This Bill may present a complex implementation challenge given that our towns are poorly planned and most of these premises have approvals from different ministries, departments and agencies and local governments,” he told the House Committee.

Asked by Mr Francis Mwijukye—the Buhweju lawmaker—if he is against the Bill, Minister Mugara said some adjustments are needed to make the Bill more amenable to him.

“The only clause that is speaking to … the alcohol policy that we are talking about of consumption only appears in clause 23,” he noted.

He added: “We feel that this Bill doesn’t necessarily address the consumption problem of alcohol and it is very important for the Committee, as you process this Bill, that you do a proper assessment of the impact of this Bill, on the employment, revenues.”

Night economy blow

Last month, the Private Sector Foundation Uganda (PSFU), together with the culture and creative industries, cautioned that the Bill, if endorsed, would ruin Uganda’s nightlife economy and hence shrink the government tax base.

“The Bill is an attack on the National Treasury. With more than Shs1 trillion in taxes from alcohol, the sector contributes more than 35 percent of the tax base,” PSFU said.

Last December, Uganda Breweries Limited (UBL) and Nile Breweries Limited (NBL) vehemently opposed penalties in the Bill. Mr Andrew Kilonzo, the UBL’s managing director, suggested that the timing in the Bill be reconsidered.

“Restricting the hours of sale jeopardises the over 1.3 million jobs created by the alcohol industry in Uganda and threatens the livelihoods of the over 6.3 million Ugandans that are supported by the industry. This includes the entire value chain comprising manufacturers, grain farmers, distributors, bars and clubs,” Mr Kilonzo told lawmakers.

Others say

While appearing before the same sitting, Mr Onapito Ekomoloit, the NBL board chairperson, said the proposed law be replaced in its entirety.

“We believe that this law is trying to regulate [the] main street, which is already regulated,” he opined.

He added: “If you talk of closing hours, 65 percent of the alcohol does not have bars where it is consumed. So what are you going to close? You cannot isolate alcohol from a 24/7 economy.”

Minister Mugara’s views on the Bill run counter to what another Cabinet minister told the House Committee.

Ms Margaret Muhanga, the junior Health minister, offered support for the Bill, disclosing that the government spends at least $677m (approximately Shs2.6 trillion) on treating diseases triggered by alcohol consumption.

Ms Muhanga also suggested that the legal alcohol-drinking age be elevated from 18 to 21 so as to protect “young individuals from the potential harms.”

She added that the “brain continues to develop throughout adolescence and into the early 20s. Exposure to alcohol drinking during this critical period can “have lasting effects on cognitive functions, memory like memory loss and decision making.”

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