The Private Sector Foundation Uganda (PSFU) and stakeholders from the culture and creatives industry have raised alarm over the potential ramifications of the proposed Alcohol Drinks Control Bill, 2023, warning that it could have severe adverse effects on the economy and cultural sectors.
Appearing before parliamentary committees on Health and Trade, Private Sector Foundation (PSFU)emphasized the significant contribution of the alcohol industry to the national treasury, citing over one trillion shillings in taxes and more than 35 percent of the tax base. They cautioned that enactment of the bill could result in job losses, revenue reduction, and the crippling of the alcohol manufacturing sector, ultimately impacting Uganda's tourism industry, which heavily relies on vibrant nightlife.
Dr. Julius Byaruhanga, the director of Policy and Business Development at PSFU, highlighted the potential ripple effects of the proposed law across all sectors, expressing concerns about its impact on businesses and livelihoods.
Brought by Tororo Woman MP Hon. Sarah Opendi, the bill aims to regulate the manufacture, sale, and consumption of alcoholic drinks. It proposes restrictions on alcohol sales, limiting operating hours between 5 pm and 10 pm on weekdays and prohibiting sales after midnight on weekends. Violators could face hefty fines or imprisonment.
PSFU criticized the proposed time restrictions, suggesting they may not effectively reduce alcohol consumption and could lead to increased home consumption. Representatives from the culture and creatives industry echoed these sentiments, arguing that limited hours would curtail their business opportunities as many patrons’ frequent establishments during nighttime hours.
Moreover, stakeholders voiced concerns over stringent licensing requirements, particularly the proximity restrictions on bars and regulations on alcohol advertisements. They fear these measures could stifle business innovation and threaten the livelihoods of individuals in the gig economy, such as influencers, Deejays, MC’s, waiters and waitresses, bouncers, bar cleaners and brand ambassadors among others.
Additionally, PSFU raised alarms about the exemption of native liquor for domestic use, warning of potential risks associated with increased illicit trade. Stakeholders also opposed the requirement for bars to be located a certain distance from schools or fuel stations, citing limitations on venue availability for cultural events and performances.
However, Mbarara Woman MP Hon. Margaret Ayebare, chairing the committee meeting, questioned whether the concerns raised by business players adequately considered public health implications.
As debates continue, the proposed Alcohol Drinks Control Bill remains a contentious issue, sparking discussions about the balance between economic interests, cultural preservation, and public health in Uganda.
