Uganda Tobacco Taxation Coalition has asked Parliament to impose an annual tax increase of 200 percent to 300 percent on locally manufactured cigarettes for the 2026/27 financial year.
UTTC is a civil society alliance advocating for higher tobacco taxes to curb consumption, reduce non-communicable diseases, and increase government revenue. Led by organizations like UNHCO and supported by the Uganda Cancer Society, the coalition pushes for a single-tier tax system, doubling excise duties to meet WHO standards.
Aziz Agaba, the Coalition’s Programs Manager said locally manufactured products account for more than 90 percent of the market share, and current tax levels are insufficient to curb consumption.
The committee, chaired by Amos Kankunda, heard that a proposed 10 percent increase in excise tax would be ineffective in reducing tobacco-related mortality and morbidity.
Marble Musinguzi, a member of the coalition, noted that the Ministry of Finance has projected an income growth rate of 7 percent for the next fiscal year. She argued that rising incomes without a significant increase in tobacco taxes make cigarettes more affordable and counteract public health goals.
The coalition stated that excise taxes must significantly impact retail prices to effectively reduce consumption and boost government revenue.
Uganda’s proposed budget for the 2026/27 financial year (July-June) has been revised to roughly 84.3trillion marking a 16% rise compared to the previous year.
84.3 trillion budget is projected to be supported by domestic revenues (approximately 40.09 trillion shillings).
Tobacco consumption and manufacturing in Uganda is a significant economic and public health issue. While tobacco is a traditional export providing foreign exchange earnings, it also presents substantial economic costs and health risks, leading to increased regulation by the government, including the 2015 Tobacco Control Ac
In 2023, approximately 6.7% (1.6 million) of Ugandan adults (15+ years) were current tobacco users, with 11.3% of men and 2.6% of women using tobacco products.
