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Consumers Push Back Against Proposed Tax on Alcohol

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Alcohol consumers in Kampala have voiced strong opposition to the government’s proposed tax on imported alcoholic beverages, warning that the move could worsen their already difficult living conditions.


The concerns follow the tabling of the Excise Duty (Amendment) Bill, 2026 in Parliament by Finance State Minister Henry Musasizi. The bill proposes a levy of Shs 3,500 per litre on imported spirits with an alcohol content of less than 80 percent, or 80 percent of the product’s value—whichever is higher.


At various drinking spots across the city, many consumers said the anticipated price increase would make alcohol unaffordable. Several argued that drinking serves as a coping mechanism for stress, particularly among people facing economic hardships.


In Bwaise, at a popular drinking area known as Katoogo, a number of patrons expressed frustration as they socialized to loud music while clutching bottles of alcohol. Despite appearing relaxed, they said the proposed tax would only add pressure to their daily struggles.


“We are already dealing with poverty, and this tax will make things worse,” said one drinker, James Nakayisi. “Prices will go up, and many of us may be forced to stop drinking—not because we want to, but because we can’t afford it.”


Others echoed similar sentiments, noting that alcohol offers temporary relief from life’s challenges.


“When problems pile up, this is what some of us turn to,” another consumer explained. “If prices increase, it will hit us hard.”


However, not all opinions were in opposition. Some residents argued that the government should have introduced the tax earlier to help curb excessive alcohol consumption. They pointed out that alcoholism has contributed to poverty, with many individuals spending more time drinking than working.


“If this had been done sooner, maybe fewer people would be struggling today,” one resident remarked. “Too many people have become dependent on alcohol.”


Still, a section of drinkers maintained that while they would prefer the tax not to be implemented, their personal circumstances often drive them to alcohol as a form of escape.

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