The Independent Uganda: You get the Truth we Pay the Price
Kasese, Uganda | THE INDEPENDENT | SICPA Uganda, a global leader in authentication, identification, and secure traceability has enhanced efforts with the Uganda Revenue Authority to facilitate traders, and tax inspectors through comprehensive nationwide training on Digital Tax Stamps (DTS) in a bid to strengthen tax compliance in the country.
The trainings that have so far taken place in Eastern and Western Uganda have seen 63 inspectors trained, and 240 DTS enforcement gadgets distributed to boost tax compliance monitoring.
This training program is taking place in parallel to a larger initiative to curb fraudulent Digital Tax Stamp (DTS) practices, with URA cautioning business owners about offenses such as reusing tax stamps, failing to activate them, and using counterfeit stamps.
While at one of the engagements with traders in Mubende District, Richard Mugarura, URA Supervisor for DTS and Enforcement in the Southwestern region, highlighted certain practices that are categorized as tax stamp fraud, for instance refilling bottles without acquiring new stamps, which he said would attract an Shs50m penalty or double the tax due on the goods.
Ismail Waiswa, a Domestic Taxes Officer, educated traders about the DTS system, which ensures that products are affixed with both digital stamps for tax purposes (URA) and conformity stamps for safety standards certification (UNBS).
The system, he said, is designed to improve transparency and compliance. Waiswa also clarified concerns regarding penalties for failing to comply with the DTS system, emphasizing that penalties are intended as deterrents to ensure businesses stay on track.
Waiswa also provided guidance on how to handle damaged stamped goods during transit, advising traders to separate and record damaged products, which would allow them to avoid overpaying taxes on the items.
Senkubuge Allan Peter, Station Head of the URA Mubende service center, urged manufacturers to report counterfeit goods to URA so they can be seized and handed over to UNBS.
Mubende Municipal Council Mayor Eng. Ssekiziyivu Innocent, who emphasized the importance of planning for taxes from the beginning stages of a business. “No business has ever closed down because of taxes,” said the Mayor. “It closes down when you fail to plan for taxes and prioritize other business expenses.” He encouraged traders to reach out to UNBS for concerns related to substandard goods and URA for all tax-related inquiries, warning against relying on middlemen.
Training Busia and Tororo
URA has also conducted DTS sensitization in the Eastern region towns of Busia and Tororo. The training geared at educating traders on how to install and use the KAKASA DTS App attracted a cross section of traders.
The URA Team headed by Samuel Emeru Ebyau from the Domestic Taxes Department took traders through the DTS App and urged them to share the knowledge they have acquired with fellow business people that were unable to attend the training.
Traders were informed that Digital Tax Stamps were introduced in 2019 as a solution that helps in the collection of Local Excise Duty on several gazetted products. These labels not only authenticate the product, but also enable URA to track taxes from gazetted excisable goods while Uganda National Bureau of Standards uses the same stamps to ascertain product conformity to standards.
Emeru informed the taxpayers that when a product is found in the dealer’s shop or stock and it has no stamp, it is considered illegal or smuggled because the supplier and retailer would have flouted the process by selling unstamped goods.
“Unstamped gazette products are not allowed on the market and non-adherence to this attracts a penalty of UGX 50 million. Taxpayers should avoid dealing in unstamped products so that their businesses are not disrupted” he cautioned. You must first generate a PRN, make the payment and then collect the stamps, then apply them to the product you deal in. Also note that stamps are picked by the authorized person from SICPA (U) office,” Emeru advised.
Furthermore, Wilson Katumba, Busia Station Head urged traders to ensure that they only buy stamped products from their respective suppliers or manufacturers.
“Your role as a trader is to engage the manufacturer and tell him to apply the Ugandan Digital Tax Stamps on the products at the different designated application points along their value chain,” Katumba added.
The engagement also emphasized URA DTS enforcement measures meant to promote compliance.
SICPA Uganda and URA continue to work closely to foster better tax compliance and ensure that businesses across Uganda adhere to tax and safety standards.
