Tobacco.org

Anti-tobacco activists want 20 per cent tax increase on cigarettes 

Anti-tobacco activists have called on the government to increase the excise duty on tobacco products by 20 per cent. It is expected that the increase in the tax on cigarettes will increase the retail price, which could reduce demand, despite nicotine being addictive.

According to the activists, the 20 per cent increase in tobacco excise duty would also increase Ugandan tax revenue by an estimated Sh5.24 billion.

The recommendation was made to the Minister of Finance, Dr Ezra Suruma, in a five page memorandum which was delivered to him on last Friday by members of Tobacco or Health Forum, an organisation fighting against tobacco use.

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Ugandan Exports Soar 40% on Higher Commodity Prices (Update1) 

Uganda's export earnings soared 40 percent last year on higher prices for most of the country's main commodities, the state-run Uganda Export Promotion Board said. . . .

Income from tobacco more than doubled to $66.3 million last year, when British American Tobacco Uganda Ltd., the east African country's biggest producer, recorded its highest-ever output, the board said.

Farmers contracted to BAT Uganda, a unit of British American Tobacco Plc, increased production in 2007 to 19,000 metric tons, from 12,700 tons a year earlier, the report said. Uganda produces mainly flue-cured tobacco, which is dried in heated barns.

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British American Tobacco launches new brand 

BRITISH American Tobacco Uganda has introduced a new cigarette brand onto the local market. Pall Mall was launched at the Centenary Park in Kampala recently.

James Mulwana, the chairman, presided over by the event. Mulwana lauded the company for continuously offering quality products.

"BAT Uganda is among the top taxpayers contributing up to sh.46.6b in cigarette excise and VAT.

"We are proud to introduce another brand that is value for money and will be meeting the demands of adult smokers in the market," Mulwana said.

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Ouma quits smoking 

UGANDAN professional boxer Kassim ‘The Dream’ Ouma is more than determined to get his career back on track with victory over American Cornelius Bundrage on Saturday.

Ouma, who had all sorts of troubles in and outside the rig last year, revealed he has quit smoking and is purely a different fighter ahead of the bout.

“Everybody knows he's (Bundrage) is a tough guy. But Kassim Ouma quit smoking a long time ago, so he won't be able to smell anything. That dog won't be able to smell,” Ouma told celebrated boxing journalist G. Leon.

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Batu returns to profitability 

BRITISH American Tobacco Uganda is back to profitability after three years of persistent losses. The tobacco leaf exporter announced Shs6.1 billion profit after tax (Shs3.3 billion), in the 12 months to December 31, 2007 compared to a loss of Shs10.1 billion in 2006.

Mr Isaac Ampeire, Batu’s company secretary attributed the growth to change in the company’s strategy to reshape its leaf business arm, which translated into growth of sales.

“The new strategy focused on business re-modeling to optimise cost and increase competitiveness of our tobacco in the world export market,” Mr Ampeire said in a statement that accompanied the company’s full year results.

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• Smoking in public remains banned  

The Court of Appeal last week dismissed an appeal against the ban on smoking in public places. The appeal filed by former British American Tobacco Controller, Joseph Erayu sought to argue that the ban on smoking violated his constitutional rights as a smoker and restricted his liberty and freedom of movement.

But court unanimously found that Eryau's appeal had been overtaken and that the law banning smoking in public places was already in place. The Environment Action Network (TEAN) spokesperson, Philip Karugaba, is optimistic that the development will help in enforcing the law on smoking in public places.

"We are obviously delighted by the result. Breathing second-hand smoke is like being punished for sins you did not commit. It exposes the non-smoker to the same deadly diseases as a smoker," Karugaba said in a statement.

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• Appeals Court dismisses case against ban on public smoking 

THE Appeals Court has dismissed an appeal against a ban on public smoking filed by former British American Tobacco Quality Controller Joseph Eryau. In 2001, Mr Eryau filed a case against The Environmental Action Network (TEAN), an environment group, which pushed for the ban on public smoking -arguing that the ban violated his constitutional rights as a smoker and restricted his liberty and freedom of movement.

Last week, however, court unanimously found that Mr Eryau's appeal had been overtaken by events and that the law banning public smoking was already in place.

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Authorities Failing Ban Against Smoking  

Local authorities are failing the implementation of the 'No Smoking in Public Places ban', Uganda's environmental watchdog has said.

Speaking to journalists on Tuesday, The environment Inspector at the National Environment Management Authority, Mr Patrick Kamanda blamed people who give out trade licences for their lack of involvement. In controlling smoking in public places.

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Batu tobacco farmer incomes doubled 

TOBACCO farmers have seen their incomes and bonuses doubled by the British American Tobacco Uganda following a successful growing season.

Mr Serhat Eroglu, the managing director, said in a financial statement that the company paid a total of Shs36 billion to tobacco farmers in 2007, up from Shs19 billion in 2006.

This represents approximately a 50 per cent increase in farmer incomes paid across the country. This growth came directly as a result of improved farmer prices announced in early 2007 to encourage farmers to supply quality tobacco leaf volumes.

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BAT on a high despite freeze on ' 07 dividends 

British American Tobacco (Uganda) closed 2007 on a high note with its leaf export volumes soar and cigarette sales going up. The company's shares on the stockmarket maintained a surge to complete the firm's return to good performance.

By the end of last year, BAT had posted the highest export volumes reported in many years, increasing to 19 million kilogrammes up from 12.7 million kilogrammes in 2006. It also posted close to 50 per cent increase in overall shipments and four million kilogrammes above its target volume for 2007.

"We have improved production capacity by over 52 per cent through implementing innovative efficiency initiatives," said Cathy Adengo, the company's corporate and regulatory affairs manager.

However, the jury is still out on whether the firm can sustain this recovery rate after three years of non-profit and no payment of dividend to its shareholders.

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Uganda probes 'illegal' buying of tobacco 

Investigations by the Ugandan Government into claims that Uganda Leaf Tobacco Company illegally bought tobacco from farmers sponsored by Continental Tobacco are still going on.

Continental, a subsidiary of Mastermind Tobacco, had estimated to buy 604 tonnes of tobacco from its farmers in August but got 200 tonnes thus the suspicion.

"Details of this allegation will be brought to the attention of the tobacco inspecting officer in Mubende (Uganda) who will conduct an investigation and furnish this office with the required information before any measure can be taken," said a letter from the authorities.

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Trade ministry probes tobacco firm over marketing malpractices 

THE trade ministry is investigating Uganda Leaf Tobacco Company Ltd for engaging in marketing malpractices.

The ministry is furious that the firm contravened the Tobacco Control and Marketing Regulation 1996 by buying tobacco leaf in Kibaale district from farmers sponsored by Continental Tobacco (U) Ltd, a rival company.

"This office has received allegations suggestive of the fact that your company has been involved in marketing malpractices by buying tobacco from farmers in Kibaale district where you have only been introduced to conduct feasibility studies but have not been issued a Tobacco Buyers' Certificate.

"It is further alleged that in Kyebando Unit, you bought tobacco at night without issuing receipts.

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BATU doubles its tobacco exports 

Tobacco giants British American Tobacco Uganda will double their export earnings this financial year following a dramatic increase in their export volumes to 19 million kilogrammes. . . .

Mr Serhat Eroglu, the managing director, said the reduction in price has been as result of increased efficiency, and reduction in operating costs by $2 million (Shs3.5 billion). He said this has made BATU the preferred source of flavoured tobacco for the Group. The price change now puts BATU in the number one spot of the most affordable source of tobacco in the BAT global family.

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LETTER: Tobacco growers, watch the effects 

IN the light of the recent UN summit on climate, I wish to draw attention to the damaging environmental impact of tobacco growing, especially in West Nile, the north, Bunyoro and south western regions of Uganda.

Thousand of acres of woodlots have been felled for flu cure tobacco production in Arua, Koboko, Yumbe Gulu and Lira districts. The responsible companies give farmers seedlings, supposedly to replant chopped forests, yet no attention is paid to the long maturation period.

As a result, the land is bare, forests that would otherwise filter carbon emissions and buffer arable land from erosion by storm water are removed and the climate in the tobacco-growing districts worsens with each passing year.

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• More youth smoking, says report 

A fact sheet released by the World Health Organisation and the Centre for Disease Control in Kampala yesterday revealed that at least 67 per cent of adolescents aged between 13 and 15 years have smoked cigarettes or have attempted to use tobacco products. The survey was done on Ordinary Level students in Senior One, Two and Three from different schools.

"We are seeing an increase in the use of tobacco by the youth at an early age," said WHO's representative in Uganda, Dr George Melville Omorlabi, during the Tobacco Control Symposium yesterday. "The problem of tobacco is compounded by alcohol and sex and we are going to have a big problem if we do not act now." . . .

Out of the 4,283 students interviewed in the Global Youth Tobacco survey conducted between April and March this year, 20 per cent said they have ever smoked cigarettes, 21 per cent currently use a tobacco product, while nine per cent smoke. Another 17 per cent use other tobacco products like chewing tobacco, snuff, smoking cigars, cigarillos or the pipe.

The study further says another seven per cent of adolescents are likely to start smoking next year.

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