URA collects Shs6.8b in one week of enforcing digital tax measures
Digital tax stamps have been one of the measures through which URA is seeking to improve tax collection. Photo / File
What you need to know:
- The enforcement, which started last week seeks to improve compliance for value added tax rated goods and products gazzeted to carry digital stamps
Uganda Revenue Authority says it has collected Shs6.8b in just one week of enforcing compliance of digital tax measures, among which include Digital Tracking Solutions (Stamps) and Electronic Fiscal Receipting and Invoicing Solution (EFRIS).
The enforcement, Ms Sandra Kaitare, the URA assistant commissioner of the petroleum and mining division, who is overseeing the operations, said in a statement that was mainly conducted in the Kampala Central Business District, with the bulk of the money coming from penalties imposed on non-compliant tax payers.
The enforcement seeks to ensure that all value added tax rated taxpayers issue invoices and ensure that all goods gazetted to carry digital stamps are stamped and activated.
Digital tax stamps, implemented in partnership with SICPA, a global provider of traceability and authentication solutions, have since 2019 enhanced digital tax tracking solutions, becoming a cornerstone in revenue collection.
URA has since last year conducted a number of tax sensitizations about EFRIS and digital tax stamps, whose non-compliance carries hefty fines.
The law prescribes a fine of Shs6m for value added tax payers that do not comply with EFRIS guidelines, while manufacturers and retailers who do not comply with digital tax stamps guidelines are fined Shs50m, in addition to seizure of the unstamped goods.
Ms Kaitare said URA is seeking to achieve an improvement in taxpayer compliance, noting that the “success of this project was finding less non-compliant tax payers to penalize".
URA has also deployed personnel to guard checkpoints across the country, among which include Karuma, Pakwach, Jinja and Mbarara bridges.
“The aim is to check all products crossing to and from upcountry to the [Kampala Central Business District]. Goods of a VAT-rated taxpayer who makes a sale or supply without a clear e-invoice are seized until the trader issues one, [while stamps are] also monitored to ensure compliance,” she said.
The enforcement, which started last week, is expected to continue for at least six months.
