A senior health official has warned that Ugandans could soon face higher medical costs and possible drug shortages following a recent increase in taxes on imported medicines and pharmaceutical products.
The National Drug Authority (NDA) is implementing a new policy requiring all drug importers to pay a 17 percent tax on consignments, up from the previous 12 percent, effective October 1, 2025.
“Such high taxes will make essential medicines less affordable and accessible to ordinary Ugandans,” said Dr. Hussein Oria, secretary of the Uganda Pharmacy Promoters Association (UPPA). “This could result in immediate price hikes, strain insurance systems, and force patients to ration or skip critical treatments.”
Dr. Oria criticized the NDA for proposing the tax increase without consulting importers and distributors. UPPA chairman Kirti Shah described the move as “unfair and unsustainable,” arguing it contradicts Uganda’s commitment to affordable healthcare.
“This is an abnormal increase, and no stakeholders in the pharmaceutical sector were consulted,” Shah said. “The World Health Organization recommends minimal taxes on medicines to ensure public access to healthcare.”
If the government fails to suspend the new fees, UPPA has warned that many pharmaceutical importers may halt operations, potentially triggering nationwide shortages of medicines and medical devices.
NDA spokesperson Abiaz Rwamwiri explained that the tax hike is part of broader reforms aimed at raising domestic revenue and promoting local drug manufacturing under the Buy Uganda Build Uganda (BUBU) initiative.
However, Dr. Oria expressed concern that the fees, including steep Good Manufacturing Practice inspection charges and registration costs for imported products and medical devices, could undermine patient care. For instance, inspection fees for facilities outside Africa have tripled from $8,000 to $24,000, while annual retention fees and registration costs for diagnostic tools have increased significantly.
“These costs do not make locally produced drugs cheaper or more available,” Dr. Oria said. “Instead, they raise the overall price of healthcare for ordinary Ugandans, most of whom pay out-of-pocket for treatment.”
UPPA is demanding that the government immediately suspend the new importation taxes and regulations, giving authorities a two-week ultimatum. Failure to act, the association warns, could lead to a nationwide shutdown of pharmaceutical imports and wholesale operations, putting Uganda’s medicine supply at serious risk.
