Mobilising MPs to support the tax bill for specialised healthcare investment

In the corridors of legislative power, two Bills stand poised to enact transformative change in Uganda’s healthcare landscape: the Income Tax (Amendment) Bill, 2024, and the Excise Duty (Amendment) Bill, 2024. 

Both Bills harbour the potential to address critical health challenges facing our nation, from bolstering specialised healthcare investment to curbing the tide of non-communicable diseases (NCDs) through targeted taxation measures.

At the forefront of this legislative agenda is the Income Tax (Amendment) Bill, 2024, which seeks to expand the definition of retirement funds and impose taxes on the disposal of non-business assets. 

Of particular significance is its provision to exempt income derived from operating specialised hospital facilities. 

This exemption not only incentivises private sector investment in healthcare but also aligns with the global imperative to ensure universal access to quality health services, as underscored by the recent World Health Day theme, “My health, my right.”

In Uganda, the burden of NCDs looms large, with diseases like cardiovascular ailments, cancers, chronic respiratory conditions, and diabetes claiming millions of lives annually. 

The socioeconomic ramifications of NCDs are profound, exerting pressure on healthcare systems and diminishing productivity. Despite concerted efforts, Uganda continues to grapple with modifiable risk factors driving NCD prevalence, including tobacco use, unhealthy diets, physical inactivity, and alcohol consumption.

Enter the Excise Duty (Amendment) Bill, 2024, which aims to revise excise duties on goods and services, including lifestyle products like tobacco and alcohol. 

While Uganda has made strides in tobacco control, with the 2015 Tobacco Control Act paving the way for stringent regulations, challenges persist. 

Notably, the Bill’s provisions could fortify existing measures by imposing taxes on tobacco and alcohol products, thereby curbing consumption and generating revenue for health promotion initiatives.

Moreover, the Bill’s emphasis on defining and taxing products like fruit and vegetable juices underscores a broader commitment to public health. 

By incentivising healthier consumption choices and discouraging the use of harmful substances, the legislation aligns with Uganda’s aspirations for sustainable development and population wellbeing.

The significance of these legislative efforts cannot be overstated, especially in light of Uganda’s commitment to the United Nations’ Sustainable Development Goals (SDGs) and the WHO’s global health agenda. 

As echoed by the UN acting Resident Coordinator, El Khidir Daloum, Uganda must adopt a whole-of-government and whole-of-society approach to tackle NCDs comprehensively. 

This entails synergising efforts across ministries and stakeholders to implement evidence-based interventions and sustainable financing mechanisms.

Crucially, the proposed tax amendments present a unique opportunity to mobilise resources for NCD prevention and control. Preliminary results from the NCD investment case underscore the potential of health taxes to mitigate the economic and health burdens associated with NCDs. By leveraging taxation as a tool for behaviour change and revenue generation, Uganda can accelerate progress towards SDG target 3.4 while safeguarding the health and wellbeing of its citizens.

In conclusion, the time is ripe for decisive action. As parliamentarians deliberate on these Bills, I implore them to prioritise the health and prosperity of our nation. 

By supporting the Income Tax (Amendment) Bill, 2024, and the Excise Duty (Amendment) Bill, 2024, MPs can usher in a new era of healthcare equity and NCD prevention, ensuring that every Ugandan enjoys the fundamental right to health.
            
Moses Talibita, course facilitator on Public Health Ethics and Law at Nkumba University School of Sciences.  [email protected]