KAMPALA, Uganda — Uganda’s Ministry of Finance has proposed a hike in excise duty on cigarettes to combat smoking and boost revenue. Minister of State for Finance Henry Musasizi emphasized the need for the tax increase, citing inflation trends and the importance of discouraging tobacco consumption.
Musasizi noted that the excise duty on cigarettes has remained unchanged since the 2017-2018 financial year, despite a 28.8% inflation rise over the period. The proposed increase is expected to generate an additional 19.40 billion shillings.
Health sector stakeholders have been pushing for higher taxes on tobacco products to reduce smoking-related health risks. Musasizi defended the proposal, highlighting its dual economic and public health benefits. By increasing cigarette prices, the government aims to discourage consumption while generating revenue.
The proposed tax amendments are part of Uganda’s broader strategy to enhance domestic revenue collection and address economic challenges. If approved, the tax increase is expected to significantly contribute to the country’s fiscal sustainability while promoting healthier lifestyles.
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