URA headquarters in Nakawa, Kampala.
Uganda’s domestic revenue collections have grown by 40 percent, driven largely by reforms in tax administration, according to the 2024/25 Auditor General’s Report.
The report shows that total government revenue increased from Shs22.098 trillion to Shs32.357 trillion, representing a Shs10 trillion rise attributed mainly to improved compliance and the adoption of digital tax administration systems.
A key pillar of this reform has been the Digital Tax Stamp Solution (DTS), introduced to strengthen integrity within the excise duty regime. DTS involves affixing tamper-proof digital stamps to excisable goods at production or import points, enabling real-time tracking from factory to market. The system is implemented by SICPA Uganda under the aegis of the Uganda Revenue Authority (URA).
According to the Auditor General, the deployment of DTS and other digital tools has helped close loopholes that previously allowed untaxed goods to circulate on the market. As a result, customs and excise revenues rose by 29 percent, alongside strong growth in VAT and income tax collections.
Beyond revenue performance, DTS has reshaped market behaviour in sectors previously affected by illicit trade. Simba Cement Uganda is among manufacturers that have publicly endorsed the system, noting that digital stamps make it easier to distinguish genuine products and ensure all taxes due are paid, thereby promoting fair competition.
At the policy level, government officials have reaffirmed the role of digital systems in domestic revenue mobilisation. Speaking at the launch of the 2025 Uganda Economic Update, the Acting Permanent Secretary and Secretary to the Treasury, Mr Patrick Ocailap, said digitisation was enabling government to raise more revenue without increasing tax rates.
“The use of digital systems is great for our country and will help URA collect more revenue, such as digital stamps on everyday products that we find in the supermarkets,” Ocailap said.
President Museveni has also identified DTS and the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) as central to government’s revenue and anti-corruption strategy. In his 2025 State of the Nation Address, he said digital systems would reduce human interaction in tax processes and improve accuracy in revenue declarations.
URA reports that compliance has continued to improve, with the number of registered DTS taxpayers rising to 1,680, covering a broad range of excisable products including alcoholic beverages, soft drinks, cement, cooking oil, sugar, tobacco and bottled water.
While the Auditor General acknowledges early implementation challenges, the report concludes that longer-term compliance gains have outweighed initial disruptions. As government targets Shs37.2 trillion in revenue in the 2025/26 financial year, digital enforcement systems such as DTS are expected to remain central to Uganda’s domestic revenue mobilisation strategy.
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