Digital Tax Stamps: 65 companies comply

Wednesday February 26 2020

According to URA goods such as cig

According to URA goods such as cigarettes, water and soda, among others are expected to have Digital Tax Stamps. FILE PHOTO  

By CHRISTINE KASEMIIRE

Kampala- At least 65 companies have installed Digital Tax Stamps equipment, according to Uganda Revenue Authority.
Speaking to Daily Monitor yesterday, Mr Ian Rumanyika, the URA assistant commissioner public and corporate affairs, said currently there is an increase in traction with about 65 companies now compliant.

“We are progressing and we have seen more companies comply. There are currently 53 manufacturers and 12 importers complying with the Digital Tax Stamps,” he said.

This is an increase from the 21 manufacturers and 11 importers that had complied as of January 15.
URA, according to Mr Rumanyika, has a target of 93 companies. URA in November last year gazetted soda, beer, spirits, wine, mineral water and cigarettes as the pilot products for implementation of the Digital Tax Stamps. A notice was effectively released warning manufacturers that they would be prosecuted if they failed to install Digital Tax equipment by January 31, 2020.

However, court stopped implementation of the deadline and the case is yet to be disposed of. Yesterday, Mr Rumanyika, who declined to give further details told Daily Monitor, a water bottling company had been fined Shs50m for being non-compliant.

URA will effective this month, implore field inspectors to be on the lookout for non-compliant products for immediate seizure and application of necessary sanctions.

Implementation of Digital Tax Stamps has faced resistance from the manufacturers, who say it will increase the cost of doing business.

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However, in its defense URA has said the stamps will in fact increase manufacturers’ earnings since their main goal is to curb substandard products.

Mr Simon Kaheru, the Coca-Cola Beverages public affairs and communications director, one of the compliant manufacturers, said they have implemented the tax stamps and continue watching the progress keenly.

“As consistent tax payers, we are sure the numbers will tally and we hope that URA derives the right benefit in terms of increased tax collection from any company that was not paying,” he said, noting there were still ongoing discussions about transferring the cost.

Some of the compliant companies

Companies
Leaf Tobacco & Comm
Hariss International
Mukwano Industries
Nc Beverages
Ice Love Water
Crown Beverages
Wavah Water
NBL Jinja
NBL Mbarara
Rwenzori
Century Bottling Company
Aqua Cooling
UBL
Yaket International
Kiri Bottling Company
Nile Derivatives
Brigade Distillers
Hema Beverages
Yuti Brewerries
Ambiance Distillers
Boss Beverages
Maganjo Ark
Kayunga Food & Beverages
BAT
Heineken

editorial@ug.nationmedia.com

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