URA closes four companies over digital stamps

Kampala, Uganda | THE INDEPENDENT | Uganda Revenue Authority on Monday closed premises of four manufacturers in Kampala for continuing to produce products without putting digital stamps on them.

The companies are, Amron International, Prime Care International, Cloud water world and John Distillers. All the companies have been closed as the tax body investigates further.

Digital tax stamps are physical paper stamp which are attached to goods or their packaging and contain security features and codes to prevent counterfeiting, tamper-proof features.

The Kawempe-based Amron International which makes Marley Pineapple Wine and Corona Pineapple wine was found to have never registered for stamps at all.

Prime Care International, manufacturers of Choice Waragi, Star Pineapple Wine, White Cane Spirit and Commando Premium Waragi was found bypassing the digital tracking solution by not activating the ordered stamps.

“Unstamped products were found in their stockroom and their premises were consequently sealed off pending further investigation,” said URA.

Cloud Water World, manufacturers of Cloud Water were found to have registered for digital stamps but unfortunately continued to produce without ordering for stamps.

John Distillers, located in Masanafu and manufacturers of X5 Gin and Camp Fire Gin were found to have affixed with stamps but their management team could not account for the variance in stamps. URA says this is “an indicator of under declaration and or falsified production volumes and sales.” Their premises were also sealed off too.

Beverages and spirits manufacturers were among the first products chosen to have stamps from January this year. This is because they are high risk products. The digital stamps are expected to give the tax body the true number of how much products are sold in the country.

Once a manufacturer is found with unstamped goods at his place of production, they are charged Shs 50m or two times the tax value of the unstamped goods produced, whichever is higher.

Digital stamps are meant to help URA catch tax cheats.

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URN