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Uganda loses over Shs38b in illicit trade of tobacco

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Uganda loses over Shs 38 billion in taxes due to the illicit trade of tobacco. The illicit trade of tobacco alluded to lax enforcement of existing laws in the country. 

Speaking at Uganda Breweries Limited’s (UBL) event which is aimed at sensitizing the public and the relevant authorities on the adverse effects of illicit alcohol and how to spot the difference between licit and illicit Billy Tsama, the Fiscal Affairs Manager British American Tobacco in East Africa said 24% of the tobacco consumed in Uganda is illicit.

He said the tobacco manufactured locally on top of being smuggled into Uganda from the neighboring Countries.

“Uganda loses Shs 38 billion every year to the illicit trade of tobacco. Kenya loses Shs 180b to illegal trade of tobacco. Therefore URA should work with the Kenya Revenue Authority to fight this vice,” he said.

The Alcohol and other sectors have over the years been faced with the challenge of illicit trade in the form of counterfeits, contraband, look-alikes, and non-DTS-compliant products, which have not only caused harm to the unsuspecting public but also led to a significant loss in government revenues through unpaid taxes.

Julius Nkwasire, the Assistant commission in charge of enforcement at Uganda Revenue Authority (URA) called for collective efforts to stop the vice in Uganda and the neighboring countries.

“These illegal activities kills investments and the legitimacy of a company because someone is riding on their brand,” he said adding, that illicit trade has exposed consumers to health hazards and hence leading to loss of lives.”

He said the tax body in collaboration with police has enhanced background investigations which have led to prosecution of various persons engaged in illicit trade.

The Country Director, Unilever Uganda Limited, Joanita Mukasa Menya said counterfeit is morally wrong.

“Counterfeit costs government a lot of money and therefore it is a vice which needs to be fought together,” she said.

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