KAMPALA — Civil Society Organisations (CSOs) have endorsed government proposals to increase taxes on alcohol and sports betting earnings, arguing that the additional revenue could help fund Uganda’s strained health sector amid rising cases of addiction and mental illness.
Appearing before Parliament’s Finance Committee, Moses Tahibita, Legal Officer at the Uganda National Health Consumers Organisation and a member of the Tax Justice Alliance Uganda, said the proposals under the 2026 Tax Bills present an opportunity to address both public health and revenue challenges.
“We appreciate this very proposal because it factors in various taxing strategies that indeed translate to mitigating the side effects of accessing alcohol because it makes it expensive, it supports government generating revenue, it also responds to prices and of course inflation,” Tahibita told lawmakers.
He urged government to go further by institutionalising annual tax increments on alcohol to ensure sustained funding.
“We call on government to impose these taxes annually… that every other tax cycle we will be seeing the increments because that funding, if earmarked, will provide alternative financing mechanisms for the health sector including financing national health insurance,” he added.
Mental health concerns drive support
Tahibita said CSOs support the proposed alcohol tax not only for revenue generation but also for its potential to curb harmful consumption patterns and protect public health.
“We support the proposal which is levying a tax, we also support the proposal which is protecting our local market… but regardless of where alcohol is coming from, it will indeed harm life,” he said.
He linked alcohol abuse and gambling to a growing mental health burden, warning that many Ugandans are increasingly seeking specialised care that remains costly and limited.
“We have seen a lot of mental health cases and people seeking specialised health care which is too expensive,” Tahibita noted.
Sugar tax also gains backing
The CSOs also backed proposals to increase taxes on sugar and sugary drinks, citing a surge in non-communicable diseases and dental health problems.
“We have also been informed of the increasing cases of paediatric dental caries… people now no longer look at drinking tea in the morning, they are drinking fizzy sodas and juices that are heavily imposed with sugars,” Tahibita said.
“So, we are supporting the increment and we are happy with how government is choosing to impose these taxes.”
Policy shift toward preventive health
The proposals are part of broader efforts by the Ministry of Finance, Planning and Economic Development to widen the tax base while addressing public health risks associated with lifestyle-related consumption.
CSOs argue that if well implemented and properly earmarked, the taxes could reduce harmful behaviours while generating critical funding for healthcare services, including the long-awaited national health insurance scheme.
The Finance Committee is currently scrutinising the tax proposals before they are debated and passed by Parliament.
