How digital stamps have enhanced tax collection, market transparency 

The Uganda Revenue Authority (URA) Taxpayers’ Appreciation Day 2024, themed “Honouring Pillars for National Growth,” celebrated the pivotal role taxpayers play in Uganda’s progress. 

In an address at the ceremony, Finance minister Matia Kasaija, highlighted the tireless efforts of taxpayers in contributing to the country’s economic resilience. The occasion was more than a recognition of notable tax payers; it was an acknowledgment of how each taxpayer’s commitment helps build the nation’s future.
Mr Kasaija emphasized that taxes are not merely financial obligations but essential investments in the country’s collective future. 

“Taxes fund the education of our children, ensure quality healthcare for our communities, and build infrastructure that connects people, businesses, and opportunities,” he stated. 
His remarks underscored the role taxes play in enabling Uganda’s growth trajectory.
Mr Kasaija described compliance with tax obligations as a patriotic act, affirming that it demonstrates trust in the system and a collective responsibility to help Uganda rise from past economic challenges, including the impacts of the COVID-19 pandemic.

As Uganda continues to pursue its ambitious economic goals, innovative approaches are being adopted to enhance tax compliance and ensure the efficiency of the tax system. One such initiative is the implementation of Digital Tax Stamps (DTS), which aims to tackle the issue of tax evasion while improving transparency in the marketplace. The DTS system enables the tracking of goods from production to distribution, ensuring that all products are compliant with tax regulations. These stamps are applied to a variety of products, including beverages, tobacco, cement, and other consumer goods, allowing the government to monitor and verify the authenticity of goods circulating in the market.

In 2019, the government contracted SICPA, a global leader in secure tax stamp technologies and supply chain monitoring solutions, to implement this digital transformation. With its expertise, SICPA Uganda has aided the government in implementing a system that not only strengthens tax collection but also supports product traceability. By incorporating secure digital tax stamps, the government aims to create a level playing field for businesses, ensuring that all businesses, large or small, comply with tax regulations. This initiative is expected to significantly reduce illicit trade and counterfeit products, promoting fair competition and protecting consumers.

URA Commissioner General, Mr John Rujoki Musinguzi also acknowledged the vital role of taxpayers in advancing Uganda’s economy. He emphasized the importance of collaboration between the URA and taxpayers, which has been central to the government’s tax collection success. He also recognized the progress Uganda has made in increasing the number of taxpayers, expanding the tax base, and ensuring equity in tax contributions. 

According to the Ministry of Finance, Uganda has experienced impressive economic growth in recent years, with a projected GDP increase of 6 percent for FY 2024/25. This growth is attributed to the contributions of various sectors, including agriculture, services, and manufacturing. Kasaija commended taxpayers for their role in this success, noting that the continued investment in these key sectors is essential to achieving the government’s long-term economic goals. He further emphasized the importance of expanding Uganda’s global market access and fostering digital transformation as part of the broader economic agenda.