Uganda to Tax Unprocessed Leaf Tobacco

The Ugandan government has proposed an amendment to the 2015 Tobacco Control Act to tax processed and unprocessed leaf tobacco.

Under the bill, processed and unprocessed tobacco consigned out of Uganda would be taxed at a rate of $0.80 per kg. The tax would be paid by the consigner to the Uganda Tobacco Authority.

The Uganda National Health Consumer’s Organization (UNHCO) has proposed an amendment to the Excise Duty Act of 2019 to remove tax exemptions and incentives to conform with the amended section of the 2015 Tobacco Control Act.

UNHCO has suggested a uniform tax tier with a specific rate, an excise duty of UGX250,000 ($66.48) per 1,000 cigarettes, and the elimination of soft cap and hinge-lid packaging. The organization has asked the government to increase tobacco taxes beyond 70 percent in conformity with the World Health Organization tobacco tax standards.