The Uganda Revenue Authority (URA) has commended manufacturers for their contribution to the success of the Digital Tax Stamps (DTS) regime.
DTS is implemented by SICPA Uganda under URA and has become one of the key technology platforms supporting Uganda’s efforts to improve excise duty compliance.
The system combines secure digital stamps with authentication and traceability technology, allowing authorities to identify legitimate products and monitor goods moving through the market
According to Uganda Revenue Authority (URA) Commissioner General John Musinguzi Rujoki, Uganda’s revenue target now stands at Shs46.6 trillion, hence requiring requiring wider cooperation to achieve.
In an engagement with Uganda’ Manufacturers Association in Kampala on Thursday, the CG, through the Commissioner for Corporate Services, Mr Richard Kariisa, said government has been able to deliver on critical services owing to the compliance of manufacturers through DTS and other systems like EFRIS.
“On behalf of the CG, I thank you for the contribution to Uganda’s development through tax compliance. Your continued commitment enables government to deliver on the social and critical services as well as invest in national development priorities,” Mr Kariisa said.
He added that the Tax Body will continue to enhance systems like DTS and EFRIS to improve efficiency, transparency and fairness within the tax system.
Regarding questions from Manufacturers on the cost of DTS, Mr Kariisa noted that such expenses are deductible for tax purposes, provided appropriate records are maintained.
He implored the tax-paying community to make sure they have 100 per cent record keeping system in place so that URA can arrive at informed decisions.
DTS is a solution introduced by the government as part of the Domestic Revenue Mobilisation Strategy to help the government increase collection on excise duty, protect government revenue, combat trade in illicit products and protect consumers.
DTS has closed long-standing tax evasion loopholes such as under-declaration of production volumes. Coupled with systems like EFRIS, DTS supported a near 40% growth in domestic revenue collections for financial year 2024/25.
Already Over 1,680 manufacturers and importers are actively registered under the DTS portal, bringing hundreds of previously informal or non-compliant producers directly into the tax grid.
During a presentation, Mr Felix Niwagaba, in charge of Digital Tax Stamps, called upon manufacturers to appreciate the benefits obtained from using DTS since its introduction in 2018.
“We have been on DTS for 6 years and still going; manufacturers will be our witnesses. It is advantageous in many ways, they are now able to track their products, you do not lose stock, and other people can not mimic your product anymore, ” Mr Nuwagaba said.
Digital Tax Stamps (DTS) have been implemented since 2018 on 13 products to track production, get information on what has been sold and levy the right Excise Duty
The 13 products include: beer, Spirits, Wine, any other alcoholic beverages, soda, fruit juice & vegetable juice, mineral water or bottled water, any other non-alcoholic beverages, any other fermented beverages, tobacco products, cement, cement bulked, sugar and cooking oil.
“These stamps are offered to our clients at a subsidised price; it is not paid by URA but a compliance cost that a manufacturer or importer of these products has to bear. This cost is an allowable deduction to your income tax. All you need to do is to have records about how many stamps and how much you have insured,” Mr Nuwagaba stated.
He also noted that manufacturers are given an EFRIS invoice on purchase of these stamps, which can be retrieved for purposes of their income tax returns.
A piece of stamp for beer costs Shs30, while spirits and wines go for Shs60. Mineral water and soda go for Shs 13 and 17 respectively. Cement costs Shs 135, and Tobacco goes for Shs75.
Accordingly, there are validation tools for these stamps, including the Kakasa Inspector tool for field inspections by URA Staff, the Kakis Stamp App for consumers and buyers to verify whether a product in a supermarket or local shop is genuine and compliant and the Kakasa validator for distributors and stockists.
SICPA Uganda has also supported URA’s enforcement capability through training and technology. Previous programmes have included training tax inspectors and providing DTS enforcement devices to strengthen compliance monitoring.
Mr Niwagaba acknowledged that enforcement remains challenging because URA teams must cover the entire country, urging that “ our coverage is limited on the ground, yet we have to move around the whole country.”
“Taxpayers use a lot of tactics and can bypass; however, it does not mean you have survived. The product will be on the shelf, and we shall ask you how it found itself on the market.”
He added that the Authority has enhanced penal regimes to level the playing field and support the compliant manufacturers.
“The penalty will not get you if you know what is supposed to be done, so do the right thing,” he said.
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