By BigEyeUg Team
Stakeholders from Uganda’s culture and creative industries and the Private Sector Foundation Uganda (PSFU) and have raised alarms over the potential consequences of the Alcohol Drinks Control Bill, 2023, cautioning that its enactment could severely undermine the nation’s nightlife and lead to significant reductions in tax revenue, dealing a blow to the economy.
During their appearance before parliamentary committees on Health and Trade, PSFU emphasized the detrimental impact the bill could have on the country’s financial stability. They highlighted that the alcohol sector currently contributes over 35 percent of the tax base, generating more than one trillion shillings in taxes. PSFU representatives stated that the proposed legislation would not only jeopardize millions of jobs but also result in billions in lost revenue, potentially crippling the alcohol manufacturing industry.
Dr. Julius Byaruhanga, the director of Policy and Business Development at PSFU, underscored that the repercussions of the proposed law would extend across various sectors, exacerbating economic challenges.
The Alcohol Drinks Control Bill, sponsored by Tororo Woman MP Sarah Opendi, aims to regulate the manufacturing, sale, and consumption of alcoholic beverages. Among its provisions, the bill restricts the sale of alcohol to specific hours, permitting sales only between 5 pm and 10 pm on weekdays and prohibiting sales after midnight on weekends. Violations of these regulations could lead to severe penalties, including fines of up to Shs20 million or imprisonment for up to 10 years.
PSFU expressed concerns regarding the efficacy of limiting sale hours, suggesting that it might not necessarily reduce alcohol consumption and could inadvertently promote increased home consumption.
Representatives from Uganda’s culture and creative industries, led by singer Ragga Dee, Chairman of the National Culture Forum (NCF) voiced opposition to the proposed bill, citing its potential negative impact on their livelihoods. They argued that the restricted hours of alcohol sales would curtail their working hours, as many of their patrons engage in nightlife activities. Additionally, they criticized the stringent licensing procedures outlined in the bill, which could limit the venues available for their businesses to operate.
Furthermore, stakeholders in the creative sector objected to clauses granting the minister powers to regulate alcohol advertisements, expressing concerns over potential censorship and its adverse effects on influencers and brand ambassadors.
Mr. Martin Marku, the Agriculture, Agribusiness, and Forestry Sector coordinator at PSFU, raised concerns about the bill’s exemption of native liquor for domestic use or traditional ceremonies, warning that it could fuel increased illicit trade.
Despite these objections, Ms. Margaret Ayebare, the Mbarara Woman MP who chaired the committee meeting, questioned whether the concerns raised adequately considered the health implications for Ugandans.
The debate surrounding the Alcohol Drinks Control Bill underscores the complex balance between public health interests, economic considerations, and the preservation of cultural and creative industries in Uganda.
As discussions continue, stakeholders advocate for a comprehensive approach that addresses these concerns while mitigating potential adverse effects on the nation’s economy and cultural landscape.
We will keep you posted