Manufacturers embrace Digital Tax Stamps system

An illustration of the stamped products

Uganda Revenue Authority has started the implementation of the Digital Tax Stamps on a high.

 The tax body says that 32 manufacturers and importers have registered their factory lines in compliance with the digital tax stamps.

They include Crown Beverages, Mukwano Industries and Riham Industries, among others.

 Mr Ian Rumanyika, the Assistant Commissioner Public & Corporate Affairs at URA says that the tax body is progressing with the registration of manufacturers for digital tax stamps.

 Uganda started implementing Digital Tax stamps on select goods this financial year following in the footsteps of regional economies like Kenya and Tanzania that introduced the system years ago.

The stamps, according to URA, help in monitoring revenue declaration and they improve product authenticity.

The system is billed to save Uganda billions of shillings in taxes that were previously undeclared or under declared.

“We encourage manufacturers who haven’t complied to do so to avoid being found on the wrong side of the law,” Mr Rumanyika said.  

 Digital Tax stamps were gazetted in November last year and were enforced February 1.

Before that, some manufacturers and importers had resisted the tax system.

Goods such like wines, spirits, water, cigarettes, beer and soda are required to bear the stamps.

 Mr Rumanyika said that URA is 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,” he said.