The government has introduced an 11 per cent excise tax on cigarettes in the 2011- 2012 national budget, according to the Daily Monitor.

The increase is proposed in the government’s Excise Tariff (Amendment) Bill of 28 June and will increase the tax burden on cigarettes to nearly 60 per cent, according to local tobacco companies.
With the new tax, the cost of low segment cigarettes will likely increase from UGX 75 (EUR 0.02) to UGX 100  (EUR 0.027) per stick while premium brand will rise from UGX 200 to UGX 250 per stick, according to tobacco industry players. The five key tobacco companies to be affected are BAT Uganda, Continental Tobacco Uganda, Leaf Tobacco and Commodities, Uganda Tobacco Services and Premier Tobacco. (pi)