Digital stamps enhancing standards of products in the market – Finance

Kampala, Uganda | THE INDEPENDENT | The Government of Uganda has reaffirmed its commitment to leveraging digital innovations to bolster tax compliance, with Digital Tax Stamps (DTS) emerging as a cornerstone of this effort.

Introduced in November 2019, DTS have played a critical role in enhancing transparency, combating tax evasion, and ensuring the authenticity of goods on the market.

Digital Tax Stamps are secure labels affixed to excisable goods such as beverages, tobacco, and cement. These stamps feature encrypted codes that can be scanned to verify the authenticity and tax compliance of a product, allowing both the Uganda Revenue Authority (URA) and consumers to track goods throughout the supply chain.

The stamps were implemented in partnership with SICPA, a global leader in secure tax stamp technologies, to address tax evasion and counterfeiting while promoting fair competition in Uganda’s marketplace.

Speaking at the URA Taxpayers’ Appreciation Day 2024, under the theme “Honouring Pillars for National Growth,” Finance Minister Matia Kasaija emphasised that taxes are not merely financial obligations but essential investments in the country’s collective future.

He lauded taxpayers for their resilience and contributions to national growth, stating, “Taxes fund the education of our children, ensure quality healthcare for our communities, and build infrastructure that connects people, businesses, and opportunities.”

The DTS system aligns with this vision, reinforcing trust in Uganda’s tax administration. By enabling real-time monitoring of tax compliance, the stamps are reducing illicit trade and counterfeit products – actions that protect consumers and ensure equitable tax contributions.

Kasaija described tax compliance as a patriotic act, urging businesses to embrace the DTS initiative as part of their commitment to national development.

“Complying with tax obligations demonstrates trust in the system and a collective responsibility to uplift Uganda from past economic challenges, including the COVID-19 pandemic,” he said.

The Commissioner General of URA,  John Rujoki Musinguzi, spoke about the significant role of the Uganda Revenue Authority in the collection of taxes, emphasizing the expanded tax base and improved revenue collection. He highlighted the efforts made by the URA to ensure compliance across industries, which has fostered fairness and accountability within Uganda’s tax system.

Uganda’s economy is projected to grow by 6% in FY 2024/25, driven by advancements in agriculture, manufacturing, and services.

Minister Kasaija attributed this progress, in part, to the increasing adoption of technology in governance, including digital initiatives like DTS.

As Uganda strengthens its global market access and pursues its ambitious economic goals, DTS remains a key tool in achieving sustainable growth and ensuring equitable contributions from all sectors.

With ongoing government efforts to engage businesses and the public, the DTS initiative is expected to continue its crucial role in shaping Uganda’s tax regime and supporting the national development agenda.