• Latest
URA Pledges Cost Review of Digital Tax Stamp Amid Manufacturers’ Grievances

URA Pledges Cost Review of Digital Tax Stamp Amid Manufacturers’ Grievances

1 year ago
NEMA Unveils Compliance Assistance Unit as Stanbic, SCOUL Scoop Sustainability Awards

NEMA Unveils Compliance Assistance Unit as Stanbic, SCOUL Scoop Sustainability Awards

2 hours ago
Tourism Minister Tom Butime Welcomes New UTB CEO Juliana Kagwa

Tourism Minister Tom Butime Welcomes New UTB CEO Juliana Kagwa

2 hours ago
Makerere Don Dr Anthony Kakooza Named WTR Global Leader 2025

Makerere Don Dr Anthony Kakooza Named WTR Global Leader 2025

2 hours ago
Makerere Students Win 2025 UNHCR Student Challenge in Singapore

Makerere Students Win 2025 UNHCR Student Challenge in Singapore

2 hours ago
CEDAT Students Win Top Award at Africa Electricity Symposium

CEDAT Students Win Top Award at Africa Electricity Symposium

3 hours ago
StanChart Unveils ‘Jaguza ne Standard Chartered Bank’ Deposit Campaign

StanChart Unveils ‘Jaguza ne Standard Chartered Bank’ Deposit Campaign

3 hours ago
SoftPower News
Wednesday, July 2, 2025
  • News
  • Tourism & Travel
  • Business
  • Lifestyle
    • Fashion
  • Regional
    • Kenya
    • Rwanda
    • Tanzania
    • Burundi
    • South Sudan
    • DR Congo
  • Defence & Security
  • Sport
  • Entertainment
  • More
    • Agriculture
    • Africa
    • Columnists
    • Education
    • Health
      • COVID-19
    • International News
    • News in Pictures
    • OpEd
    • Pearl Of Africa
    • People
    • Politics
    • Special Reports
    • Women
No Result
View All Result
  • News
  • Tourism & Travel
  • Business
  • Lifestyle
    • Fashion
  • Regional
    • Kenya
    • Rwanda
    • Tanzania
    • Burundi
    • South Sudan
    • DR Congo
  • Defence & Security
  • Sport
  • Entertainment
  • More
    • Agriculture
    • Africa
    • Columnists
    • Education
    • Health
      • COVID-19
    • International News
    • News in Pictures
    • OpEd
    • Pearl Of Africa
    • People
    • Politics
    • Special Reports
    • Women
No Result
View All Result
SoftPower News
No Result
View All Result
Home Business

URA Pledges Cost Review of Digital Tax Stamp Amid Manufacturers’ Grievances

by Muhamadi Byemboijana
May 8, 2024
URA Pledges Cost Review of Digital Tax Stamp Amid Manufacturers’ Grievances

Photo by URA.

117
VIEWS

The Uganda Revenue Authority (URA) has committed to reviewing the costs of Digital Stamps following complaints from stakeholders, particularly manufacturers.

According to a survey commissioned by the Private Sector Foundation (PSFU) and conducted by PricewaterhouseCoopers (PwC) on the effects of Digital Tax Stamps, it was noted that the current structure and associated fees are high. Adding that it has led to elevated operational expenses, impacting growth and tax revenue generation.

Related Stories

NEMA Unveils Compliance Assistance Unit as Stanbic, SCOUL Scoop Sustainability Awards

Tourism Minister Tom Butime Welcomes New UTB CEO Juliana Kagwa

Makerere Don Dr Anthony Kakooza Named WTR Global Leader 2025

The survey suggested a re-evaluation of the existing contract for the DTS system and renegotiation of stamp costs, considering their impact on the manufacturing sector.

“This will require a thorough analysis of similar regional and global systems. By leveraging this comparative information, the government should be able to achieve independence from stringent contract terms, address manufacturers’ concerns, increase revenue collections, and reduce illicit trade as per the objectives of introducing the DTS system in Uganda,” the survey read.

A Digital Tax Stamp is a marking applied to goods or their packaging to prevent counterfeiting. In Uganda, these stamps are affixed to manufactured and imported goods to ensure authenticity. They contain codes used to prevent counterfeiting.

DTS was introduced in Uganda on November 1, 2019, as a tax administration tool in the excise duty system with aims to protect government revenues, combat trade in counterfeit products and illicit trade, enhance fair competition, and provide real statistical data for tax policy and administration.

The adoption of DTS stemmed from concerns about underreporting production figures and resultant excise duty from local manufacturers and importers. While initial evidence supporting these concerns was limited, DTS has since been used to safeguard government revenues and curb illicit trade in Uganda.

Andrew Kilonzo, the Managing Director of Uganda Breweries Limited, stated that manufacturers incur heavy costs in purchasing and affixing digital tax stamps, adding that DTS represents an additional financial burden.

Sarah Kagingo, the PSFU Board Vice Chairperson, called for collective efforts to gain comprehensive insights into DTS’s impact on the manufacturing sector.

She emphasized the need for enhanced collaboration between the private and public sectors for evidence-based policy formulation.Kagingo also stressed the necessity to reduce costs associated with DTS implementation, noting recent studies aimed at understanding cost drivers in the manufacturing sector. She expressed hope that the government would utilize these findings to inform policy.

In response to the report and concerns raised, John Musinguzi Rujoki, the URA Commissioner-General, stated that the cost of implementing DTS is designed to be manageable and outweighed by the benefits of improved tax compliance and reduced illicit trade.

He highlighted that the primary challenge lies in ensuring all businesses comply with necessary regulations.”Since its introduction in 2019, DTS has significantly expanded Uganda’s tax base, with a notable increase in registered manufacturers and importers,” Musinguzi noted.

“The system has been instrumental in curbing tax evasion and enhancing supply chain transparency across various sectors. However, resistance to full compliance in certain sectors continues to undermine its potential benefits.”

Musinguzi explained that significant improvement has been observed in sectors with high compliance, and the costs of DTS have been reviewed accordingly.

“As Uganda continues to modernize its tax system, the role of DTS remains crucial,” he added. “The focus now is on enhancing compliance across sectors, including Kombucha products, to fully realize the benefits of DTS and support Uganda’s broader economic goals.

Tags: Digital Tax StampsJohn Musinguzi RujokiSoft PowerSoft Power NewsSoftPowerSoftPower NewsTop News UgandaTop Uganda NewsUBLUganda

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


The reCAPTCHA verification period has expired. Please reload the page.

Recent Stories

NEMA Unveils Compliance Assistance Unit as Stanbic, SCOUL Scoop Sustainability Awards

Tourism Minister Tom Butime Welcomes New UTB CEO Juliana Kagwa

Makerere Don Dr Anthony Kakooza Named WTR Global Leader 2025

Makerere Students Win 2025 UNHCR Student Challenge in Singapore

CEDAT Students Win Top Award at Africa Electricity Symposium

StanChart Unveils ‘Jaguza ne Standard Chartered Bank’ Deposit Campaign

Stanbic Bank Ad
SoftPower News Logo

SoftPower News is a subsidiary of SoftPower Communications LLC, a Ugandan digital media group. Keep posted of the latest from Uganda and East Africa.
Plot 4B Malcolm X, Kololo
P.O Box 1497, Kampala - Uganda
Tel: +256-392-001-701
Email: info@softpower.ug

This news site is licenced by Uganda Communications Commission (UCC)

ADVERTISEMENT
Stanbic Remittance Ad
  • News
  • Tourism & Travel
  • Business
  • Lifestyle
  • Regional
  • Defence & Security
  • Sport
  • Entertainment
  • More

© SoftPower News

error: Content is protected
No Result
View All Result
  • News
  • Tourism & Travel
  • Business
  • Lifestyle
    • Fashion
  • Regional
    • Kenya
    • Rwanda
    • Tanzania
    • Burundi
    • South Sudan
    • DR Congo
  • Defence & Security
  • Sport
  • Entertainment
  • More
    • Agriculture
    • Africa
    • Columnists
    • Education
    • Health
      • COVID-19
    • International News
    • News in Pictures
    • OpEd
    • Pearl Of Africa
    • People
    • Politics
    • Special Reports
    • Women

© SoftPower News