Parliament has rejected the Alcoholic Drinks Control Bill 2023, citing concerns over its constitutionality and the lack of clarity regarding the problems it seeks to address.
During a plenary session on Tuesday, Attorney General Kiryowa Kiwanuka led the motion to reject the Bill, arguing that its implementation would impose financial burdens on the consolidated fund, which would violate constitutional provisions.
“This Bill, in our view, contravenes Article 93(a)(2) of the Constitution, which prohibits proceeding with a bill that has financial implications on the consolidated fund,” Kiryowa Kiwanuka stated. “The majority report clearly shows that implementing this Bill would affect the consolidated fund. Therefore, I move that the House rejects it.”
Kiwanuka further pointed out that the Bill does not offer any new regulations that aren’t already covered by existing laws. He suggested that any useful ideas from the Bill should be incorporated into existing legislation to avoid creating regulatory confusion.
Background of the Bill
The Alcoholic Drinks Control Bill 2023 was introduced in November 2023 by Tororo District Woman MP Hon. Sarah Opendi as a Private Member’s Bill. The Bill aimed to regulate the manufacture, importation, sale, advertisement, and consumption of alcoholic drinks. It sought to prohibit the sale of alcohol to individuals under the age of 18 and curb illicit trade in alcoholic beverages.
After its introduction, the Bill was referred to a joint committee on Health, Tourism, Trade, and Industry for further consideration. The committee’s findings were presented in a detailed report during a plenary session on August 13, presided over by Deputy Speaker Thomas Tayebwa.
Key Concerns Raised
Several key clauses in the Bill raised concerns among stakeholders. For instance, Clause 5(2) required those intending to sell alcoholic drinks to apply for a license. However, the committee noted that various licenses already exist under other laws, making this provision redundant. They also pointed out that additional licensing requirements would amount to double taxation on businesses.
The Bill also proposed restrictions on the location of licensed premises, requiring them to be at least 400 meters away from schools, health units, residential areas, or places of worship. The committee found this provision discriminatory and argued that it amounted to an indirect ban on legitimate businesses, contrary to the constitutional right to engage in lawful trade.
Another contentious issue was the proposed regulation of alcohol sale hours. Stakeholders expressed concern that limiting the hours of sale could negatively impact revenue and tax contributions, especially since alcohol sales typically peak during late-night hours.
Committee Recommendations
The joint committee recognized the need for regulation in the alcohol industry but emphasized that any regulations must be fair, balanced, evidence-based, and sustainable. They criticized the Bill for not clearly identifying the problems it intended to solve and recommended further examination to clarify its objectives.
Minority Report
In a minority report presented by Jinja South West MP Timothy Batuwa and Kabale Municipality MP Nicholas Kamara, Parliament was urged to impose time restrictions on alcohol sales. This proposal was supported by major alcohol manufacturers, including Nile Breweries Limited and Uganda Breweries Limited.
“When Uganda Breweries Limited, Nile Breweries Limited, and the Uganda Alcohol Industry Association appeared before the Committee, they welcomed the clause on time restrictions and suggested adjustments,” noted Christopher Komakech, MP for Aruu County.
Opendi’s Response
Despite the Bill’s rejection, Hon Sarah Opendi vowed to continue advocating for its passage. She indicated that plans are already underway to reintroduce the Bill to Parliament.
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