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Home / NEWS / Gov’t loses Shs1.6tn in untaxed Illicit alcohol – Report

Gov’t loses Shs1.6tn in untaxed Illicit alcohol – Report

Onapito Ekomoloit – Chairperson, Uganda Alcohol Industry Association.

Kampala, Uganda | THE INDEPENDENT | The Uganda Alcohol Industry Association has launched an industry report that sheds light on the trade and consumption of Illicit alcohol in Uganda.

Among other revelations, the report found that the government of Uganda loses approx.1.6 trillion in unrealized taxes due to evasion of tax by the illicit trade as well as lax enforcement of existing laws that govern the production and sale of alcohol.

The report, titled, Understanding and Sizing Illicit Alcohol Consumption in Uganda was released from research done in 2021 by Euromonitor International.

In compiling this report, Euromonitor conducted an extensive review of publicly available secondary resources, retail channel observations, opinions from multiple stakeholders.

Between 2017-2021, the value market size of illicit alcoholic drinks increased at a 18.3% compound annual growth rate (CAGR) from USD577.8 million in 2017 to USD956.8 million in 2020.

Onapito Ekomoloit, the association chairman said that as an industry, they are heavily impacted by the thriving illicit alcohol trade noting that the industry has to carry the heavy taxation burden and thus, government must intervene.

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