Members of the Civil Society Organizations (CSOs) have proposed that Parliament increases tax on non-alcoholic drinks which are deemed harmful to people’s health.
The Excise Duty (Amendment) Bill presented before the Finance Committee on Thursday indicates that government seeks to reduce the excise duty on non-alcoholic beverages from the current 12 percent or Shillings 200 per litre to 11 percent or Shillings 185 per litre in the coming financial year 2019/2020.
State Minister for Finance in-charge of Planning David Bahati presented this among a number of new tax measures formally to MPs. The minister told MPs that the reduction is a move by government to implement its commitment to the industry from financial year 2016/2017 to stimulate growth in productions industry.
Government seeks to collect 860 billion shillings under the new tax measures. Documents presented to the committee indicate that government is set to lose 10 billion shillings with the reduction in tax on non-alcoholic drinks.
However, CSOs including SEATINI-Uganda, Uganda Debt Network, Transparency International, Civil Society Budget Advocacy Group (CSBAG), Forum for Women in Democracy, Oxfam among others under the umbrella body Tax Justice Alliance Uganda demand that the 200 shillings per litre tax is maintained or even increased saying that the reduction in tax will lead to tremendous loss in government revenue.
Regina Navuga the SEATINI-Uganda Programs Officer says that increased consumption of non-alcoholic drinks could negatively affect the health of the consumers.
The Tax Justice Alliance Uganda also appealed to MPs to approve the government proposal to tax businesses that have been making losses for seven consecutive years.
