Breweries petition ministers over Alcoholic Bill

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Breweries and stakeholders in the alcohol industry have petitioned the ministers of investment and trade seeking changes to the controversial Alcoholic Drinks Control Bill 2023.

The breweries, in a sector consultative stakeholder meeting with Evelyn Anite, the minister of finance for investment and privatization and David Bahati the state minister for trade, industry and cooperatives, said the Bill should be withdrawn to allow for further research and consultation.

Some of their key concerns according to Onapito Ekomoloit, the board chairperson of Nile Breweries Limited (NBL) include unrealistic taxes, duplication of licences and unintended consequences.

Onapito argued that the proposed taxes on alcoholic beverages are unrealistic and unsustainable, threatening the survival of the industry and potentially leading to job losses.

He warned that the Bill, in its current form, could have unintended consequences, such as encouraging the production and consumption of unregulated and potentially harmful alcohol substitutes.

Seeking Collaboration

In their petition, the brewers urge the government to work collaboratively with industry stakeholders to develop a balanced and sustainable regulatory framework for the alcoholic beverage industry.

Jackie Tahakanizibwa, Secretary General of the Uganda Alcohol Industry Association (UAIA) and Uganda Breweries Corporate Relations, Public Policy and Regulatory Affairs Manager, said they propose a review of the proposed law and streamlining of regulations to ensure a viable and responsible industry.

“The alcohol sector is not opposed to regulation of the industry but seeks a balanced, sustainable regulation that takes into consideration the interests of all stakeholders. Looking at the applicability of the law, the Bill doesn't apply to the sale of native liquor produced for home consumption, which this presents a risk of increased illicit alcohol trade which accounts to 65 percent,” she said.

She added, “The Bill also undermines the formal alcohol industry which is already regulated by the Uganda Revenue Authority for taxes, and the Uganda National Bureau of Standards (UNBS)for quality purposes.”

On restricting the time of sale, the chairperson of Legit Bar, Entertainment and Restaurant Association (LEBRA), Tesfalem Gherahtu, said limited time may not necessarily translate into people drinking less and this could have unintended consequences of increased home consumption.

“Look at a number of people who will be affected with this, what will you do with waiters, waitresses, performing artists, `bouncers, women and men who sell eats outside bars for revellers?,” he asked, and added, “The farmers who supply raw materials like sorghum will significantly suffer. Volumes will drop hence leading to low uptake of Sorghum. So, there is a huge social economic situation to be looked at before passing this law.”

Daniel Kazibwe, also known as Ragga Dee, who said he represented alcohol consumers, noted that the Bill is an attack on freedom of consumer choice and access to goods and services. He said it’s also an attack on freedom to socialize.

“The few cinemas can't sustain entertainment. The bars have been covering up for this and the law will throw them into dust. All the 400,000 artists together with their dependents will suffer,” he said.

Daniel Kazibwe aka Ragga Dee arguing against the alcohol bill that was tabled by MP Sarah Opendi of Tororo district. (Photo by Isaac Nuwagaba)

According to the stakeholders, the proposed law jeopardizes the livelihoods of various individuals who rely on the sector.

This includes the entire value chain including manufacturers, grain farmers, distributors, stockists, bars and clubs who account for over 1,300,000 jobs by the sector impacting over 6.3m livelihoods according to Onapito.

The ministers promised to table the demands of the industry players before cabinet and before the Parliamentary committees of trade and health which are currently scrutinizing the Bill.

Bahati said that it is important that the sector is properly regulated to balance the economic, social and health aspect of the industry.

Minister of State for Trade Industry and Cooperatives, David Bahati, and State Minister for Investment, Evelyn Anite, disclosing government position to Alcohol Association members. (Photo by Isaac Nuwagaba)

Minister Anite also alluded to the people that recently died due to the consumption of taxic alcohol in Arua in West Nile.

She said that they will table the concerns, including the financial implications of the Bill to and find a way to harmonize the issues.

 The proprietor of Premier Distilleries Limited, Reddy Srinivasa, said the Bill will escalate the cost of production for the players, noting that the requirement to have minimum package of 500mililitres needs to be reduced to 200mls. 

Penalties

A fine of sh40 million or a 3 year-jail term has been proposed as sanctions for anyone found selling alcoholic drinks to a person below eighteen years of age.

With exception of depot and supermarket operators and a person who sells an alcoholic drink in a licensed tourist camp, nightclub, theater, fetes, bazaar or a trade show, a licensee shall not sell an alcoholic drink or native liquor before l7:00 hours and after 22:00 hours on working days, 12:00 hours and after 00:00 hours on public holidays and weekends.

A person who commits this offense is liable, on conviction, a fine not exceeding sh10m or imprisonment for a period of ten years. or both.

The mover of the Bill, Tororo district Woman MP Sarah Opendi (NRM), who was appearing before the Parliamentary committees of health and Tourism, Trade and Industry recently, said that young children who make most Ugandans need to be protected from irresponsible alcohol consumption.

Tororo district Woman MP Sarah Opendi (NRM).

According to Opendi, alcohol consumption is associated with high-risk behaviors including unsafe sex and use of other psycho active substances and tends to be associated with dependence on other drugs and sexually transmitted infections.

Opendi tabled the private Members Bill that seeks to among others, regulate the manufacture, importation and sale of alcoholic, regulate time allowed for sale of alcoholic drinks, and prohibit the sale of alcoholic drinks to persons below the age of eighteen.