On 13th June 2008, the Finance Ministers of Uganda, Kenya and Tanzania simultaneously read their 2008/ 2009 budget speeches to their respective nations. There was one striking similarity in the three budgets- each of the three East African countries proposed to increase excise duties on cigarettes.
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On 12 June, Uganda’s Finance Minister Ezra Suruma announced in the FY 2008/ 2009 budget speech, an increase in excise duty on cigarettes. The measure will bring in an additional sh2.1b in government revenue.
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Egypt has raised its cigarette taxes by 10 per cent for the local brands and 33 per cent for the imported luxury brands. According to the article below, smokers are fuming.
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The article below by Uganda’s Daily Monitor columnist Kevin O’Connor makes a strong argument for tobacco tax increases. In short, tobacco kills and impoverishes, however, raising tobacco taxes will increase government revenue while saving lives.
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This editorial calling for cigarette tax hikes appeared in Uganda’s Daily Monitor on 31 May, World No Tobacco Day.
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Tobacco is a product known to kill its consumers if used as recommended by its manufacturers. Any tax waiver to a company that manufactures such a product is an incentive for them to further kill Nigerians, create a public health catastrophe and further worsen our economy, the Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) has said in a statement in Lagos.
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Talk about a win-win situation: tobacco tax increases are great for government revenue and great for people’s health due to reduced consumption. A recent article by Kevin O’Connor and a World No Tobacco Day editorial in Uganda’s Daily Monitor urge the government of Uganda to increase taxes on tobacco products. Notably, Uganda’s imminent ratification of the Framework Convention on Tobacco Control (FCTC) means easier harmonization of tobacco tax policy in the East African community since Kenya and Tanzania are already Parties to the treaty.
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