(Ecofin Agency) - Every year, the government of Uganda loses at least USh30 billion (more than $8 million) in the illicit trade of cigarettes.
In an interview with Bloomberg, Mathu Kiunjuri, MD of British American Tobacco’s local arm (BAT Uganda), said today that one in five cigarettes in the country is counterfeit, whereas 10 years ago only one in ten was, which shows how alarming the situation is.
“Some of the cigarettes are marked made in South Sudan, Kenya or Uganda, while many do not show origins,” he said. However, despite these challenges and the growing tax burden, Mr. Kiunjuri said BAT Uganda expects a new profit growth this year, from the USh15.7 billion ($4.3 million) last year. The company holds 80% of shares on the Ugandan cigarette market.