Tax body, Uganda Revenue Authority has started the implementation of the Digital Tax Stamps on a high.
The body reports that 32 manufacturers and importers who are domestic and exporters have already registered their factory lines in compliance with the Digital tax stamps.
According to the tax body, large scale manufacturers including Crown Beverages, the manufacturers of Pepsi and other beverages, Mukwano industries and Riham Industries are some of those that have heeded to the call for the implementation of the Digital Stamp System.
“We are continuing with the registration of manufacturers for digital tax stamps. We encourage those that have not complied to do so to avoid being found on the wrong side of the law,” Ian Rumanyika, the Public and Corporate affairs manager at URA said.
Uganda started implementing digital tax stamps on selected goods this financial year following in the footsteps of regional giant economies of Tanzania and Kenya.
Digital Tax stamps were gazetted by parliament in November and started taking effect in the 1st of February 2020.
Goods such as wines, spirits, water, cigarettes, beer and soda are required to have these stamps.
The stamps help in monitoring revenue declaration and improvement of product authenticity.
The solution is billed to save Uganda billions of shillings in taxes that were previously undeclared or under-declared.
URA is also relying on public vigilance to stop unstamped goods from getting to the market.
“We are appealing to the public and especially distributors to be vigilant and start asking questions about goods without the stamps” Ian added.
Uganda follows Tanzania and Kenya in the implementation of Digital tax stamps in the region.
According to Rumanyika, the Digital Stamp System is a tax administration solution built upon a scalable technology platform that integrates tools, devices and software.
“The system will enable the marking, tracking, tracing, inspection and verification of excisable products throughout their lifecycle, thereby allowing URA to monitor and control the production, import, export, and distribution of these goods in Uganda, “Rumanyika says.
“The DTSS will serve as an objective, verifiable source of data about production and importation volumes and inspection and public verification activities taking place in the market. This data will be used by URA to ensure and verify the full and fair taxation of all excisable products. By addressing illicit trade and under-declaration, the DTSS will support URA in closing the existing gap in excise tax collection.”
He adds that the consumer will be in position to authenticate the digital tax stamps applied on products and to verify the genuine products anywhere by using the Kakasa URA mobile App which is being tested and will be unveiled soon.