Civil society organisations are calling for a more aggressive increase in tobacco taxes, arguing that the government’s current proposal to raise cigarette excise duty by 10% is insufficient to curb tobacco consumption, protect public health, or significantly grow national revenue.
The call was made last week as health advocates appeared before Parliament’s Committee on Finance, Planning and Economic Development, chaired by Sheema Municipality MP Dickson Kateshumbwa, to present their views on the proposed Excise Duty (Amendment) (No. 2) Bill, 2025.
Under the Bill, the government seeks to increase taxes on tobacco products by 10%. Specifically, the excise duty on locally manufactured soft cap cigarettes would increase from Sh55,000 to Sh65,000 per 1,000 sticks, while the tax on hinge lid variants would rise from Sh80,000 to Sh90,000. The government projects that this increase, alongside a similar rise on beer products, would generate an additional Sh19.4 billion in revenue.
However, several public health and consumer advocacy groups say the proposed increment is too modest to make a meaningful impact. They are instead pushing for a 100% increase in the excise duty on cigarettes, saying it would be a more effective deterrent against smoking, especially among the youth and low-income earners.
Robinah Kaitiritimba, Executive Director of the Uganda National Health Consumers Organisation (UNHCO), urged lawmakers to double the excise duty on locally manufactured cigarette brands.
She recommended increasing the tax on soft cap cigarettes to Sh110,000 and on hinge lid packs to Sh160,000 per 1,000 sticks, while maintaining the government’s proposed tax increases on imported tobacco products.
“Increasing taxes on tobacco products is one of the most effective measures to reduce consumption, especially among young people and low-income populations,” Kaitiritimba told the committee. “The proposed 10% rise will not achieve the intended public health goals or revenue targets. We urge Parliament to consider a 100% increase instead.”
She noted that tobacco use is the leading cause of preventable death globally, contributing to the rising burden of non-communicable diseases such as cancer, heart disease, and chronic respiratory illnesses. In Uganda, tobacco-related illnesses place an increasing strain on the health sector, both in terms of direct treatment costs and lost productivity.
Kaitiritimba cited guidelines from the World Health Organization (WHO), which recommend that excise duties should constitute at least 70% of the retail price of tobacco products to effectively reduce consumption.
In Uganda, however, excise taxes currently make up only about 35% of the price, keeping cigarettes relatively affordable and accessible.
“This is a public health emergency. Unless we take bold and urgent steps to make tobacco less accessible through taxation, we are gambling with the lives of our citizens,” she said.
Ezekiel Musasizi, a Programme Officer with the Centre for Tobacco Control in Africa, echoed the call for a stronger tax regime. He said Uganda has not revised its cigarette taxes since the 2017/18 financial year, despite rising inflation and evolving public health risks.
“We also recommend that the government adopt a single-tier tax system,” Musasizi said. “The current two-tier structure taxes soft caps and hinge lids differently. This allows tobacco companies to exploit tax loopholes by manipulating product classifications.”
According to Musasizi, the current tax framework violates the WHO Framework Convention on Tobacco Control (FCTC), to which Uganda is a signatory. The FCTC calls for uniform taxation of all tobacco products to prevent price gaps that encourage smokers to switch to cheaper options instead of quitting.
“A uniform excise duty on all cigarette types would close loopholes, simplify tax enforcement, and increase revenue,” Musasizi said. “Differential tax tiers are ineffective and only serve to undermine the government’s own public health and fiscal goals.”
Despite these arguments, Committee Chairperson Dickson Kateshumbwa raised concerns about the unintended consequences of steep tax hikes. He warned that drastically increasing taxes could lead to a surge in tobacco smuggling through Uganda’s porous borders.
“Every time in tax policy you increase tax exponentially, usually negative consequences come in. The importation will drop, but smuggling goes up,” Kateshumbwa said. “And the smuggling that goes up is even more dangerous because the demand remains. People know that now they have to pay Sh10,000, but through a certain border, they can get the same product for Sh5,000.”
Kateshumbwa said such price disparities could fuel a black market, making regulation more difficult and potentially exposing consumers to unregulated and even more harmful products. He also noted that businesses in the tobacco sector might respond with mass layoffs, affecting employment.
“You may say 10% is small, but 100% definitely will increase smuggling. Wouldn’t that be counter to the situation we are trying to solve?” he asked. “Perhaps a middle ground would be more effective—study it, and consider a gradual increase year by year.”
In a previous appearance before the same committee, State Minister for Finance (General Duties), Henry Musasizi, defended the government’s decision to opt for a 10% increase. He explained that while the rate seems modest, it is aligned with inflation trends and would serve both fiscal and public health goals.
“Excise duty on cigarettes has not been revised since the 2017/18 financial year. Over that period, inflation has gone up by 28.8%, eroding the real value of the current tax rates,” Musasizi said. “The new measures are a balanced response to both inflationary pressures and increasing demands from the health sector to curb tobacco-related illnesses.”
He added that the government was committed to reducing tobacco consumption, but that any changes to tax policy must be measured, evidence-based, and enforceable.
“We believe that the 10% increase is a step in the right direction and will begin to address the health concerns associated with smoking, while still being manageable in terms of compliance and enforcement.”
As debate on the Excise Duty (Amendment) (No. 2) Bill, 2025 continues, civil society insists that the time has come for Uganda to adopt tougher tobacco control policies. They argue that stronger taxation would not only reduce smoking rates, especially among the youth, but also raise much-needed revenue for public health initiatives.
“This is about saving lives and protecting the future of our children,” Kaitiritimba said. “We call on Parliament to listen to the evidence and act boldly. If we fail to act now, we will pay a much higher price later in health care costs, lost productivity, and lives.”
