Exposing the Lies: Big Alcohol’s Campaign to Block Uganda’s Life-Saving Tax Initiative
Posted on April 28, 2025 in Diageo, EABL, Political interference, UgandaThe alcohol industry in Uganda is once again misleading the public – this time by exaggerating the effects of a proposed excise duty increase on beer prices. A recent article published by Nile Post repeated industry warnings that beer prices could rise by up to 40% if the government’s tax reforms move forward:
“Passing section 3(b) of the Excise Duty Amendment Bill 2025 will make beer prices rise by up to 40%, reducing consumption, hence leading to low tax collections,” Emma Njuki, legal and corporate affairs manager at Uganda Breweries, told the Finance Committee.
This claim by Uganda Breweries (owned by global alcohol giant Diageo) is not only misleading but a deliberate attempt to stir public opposition to a crucial health-protective policy. The facts tell a very different story. Uganda’s proposed excise duty increase – from UGX 650 to UGX 900 per litre – represents a 38.46% increase in the tax per litre. However, the effect on retail prices for consumers would be much smaller.
A 500ml bottle of beer currently selling at UGX 3,500 would rise by about UGX 125, leading to a 3.6% price increase – not 40%. A 330ml bottle would see an even smaller increase, of about UGX 82.5.
Uganda has been ranked by the World Health Organization as the country with the highest level of alcohol consumption in Africa, with Ugandans using double the regional average. Meanwhile, government data indicates that Uganda spends more than UGX 2.654 trillion annually treating alcohol-caused diseases . Raising taxes on alcohol is a proven, people-centered solution that can help prevent and reduce alcohol harm, strengthen health systems, and support sustainable development.
Political interference, or lobbying, is Big Alcohol’s activity to eliminate or minimize any alcohol policy effort that would threaten sales and profits. The focus of this Dubious 5 strategy is the decision-makers and opinion leaders with the power to shape and decide alcohol policy decisions. Tactics of political interference are delay, derail, or even destroy alcohol policy initiatives, and to divide coalitions supporting alcohol policy initiatives. Big Alcohol is paying lobbyists and lobby front groups to interfere in public health policy making around the world.