A total of 21 manufacturers and 11 importers have started embracing Uganda Revenue Authority’s Digital Tax Stamp System (DTSS) also known as Digital Tracking Solution (DTS) in a move aimed at helping the tax body fight tax evasion and avoidance.
DTSS is a tax administration solution that is built upon a scalable technology platform that integrates tools, devices and software.
According to URA, the DTSS will enable the marking, tracking, tracing, inspection and verification of excisable products throughout their lifecycle, thereby allowing URA to monitor and control the production, import, export, and distribution of these goods in Uganda.
Ian Rumanyika, the Assistant Commissioner, Public & Corporate Affairs at URA, says the deadline for transitional period for all manufacturers or importers of products that were gazetted for Digital Tax Stamps including: – soda, beer, spirits, wine, mineral water and tobacco products (including cigarettes) was 31st January 2020.
He adds that 21 manufacturers and 11 importers have already completed their registration for the use of DTS.
“A person who fails to affix a tax stamp on any gazetted product or found in possession of any gazetted product not bearing a tax stamp is liable to pay a penal tax equivalent to double the tax due on the goods or fifty million shillings, whichever is higher,” Rumanyika warns.
He add that from 1st February 2020, the URA field inspectors will be on the lookout for any gazetted goods not bearing a Digital Tax Stamp for immediate seizure and application of necessary sanctions.
According to URA, the DTSS will serve as an objective, verifiable source of data about production and importation volumes and inspection and public verification activities taking place in the market.
This data will be used by URA to ensure and verify the full and fair taxation of all excisable products. By addressing illicit trade and under-declaration, the DTSS will support URA in closing the existing gap in excise tax collection..
“We encourage manufacturers and importers who haven’t complied to do so, to avoid being found on the wrong side of the law.
Equally, we appeal to the public and especially distributors, to be vigilant, and start asking questions, to ensure they only trade in stock that bears the digital stamp, because the law penalizes any person found with unstamped goods,” Rumanyika says, adding: “URA anticipates that products in the market that are not bearing the digital stamp shall be exhausted within two to three months.”
Manufacturers ready to roll out digital tax stamps
- LEAF TOBACCO & COMMODITIES U LIMITED (Tobacco)
- HARISS INTERNATIONAL LIMITED (Soda, Water)
- CROWN BEVERAGES LTD (Soda, Water)
- WAVAH WATER LTD (Water)
- AQUA COOLING LTD (Water)
- NC BEVERAGES LIMITED (Water)
- MUKWANO INDUSTRIES U LTD (Water)
- NILE BREWERIES LTD – JINJA (Beer)
- NILE BREWERIES LTD – MBARARA (Beer)
- CENTURY BOTTLING COMPANY – MBARARA (Soda)
- CENTURY BOTTLING COMPANY LTD -NAMANVE (Soda, Water)
- RWENZORI BOTTLING COMPANY LIMITED (Water)
- ICE LOVE (Water)
- UGANDA BREWERIES LIMITED (Beer)
- SRI MAYA BEVERAGES LTD (Spirit)
- EXPEDITO INVESTMENT LTD (Water)
- V2 AFRICA LTD (Water)
- ELGON BOTTLING CO. LIMITED (Water)
- K-ROMA LTD (Wine)
- OKRA BEVERAGES LIMITED (Water)
- SOUTHERN BEVERAGES UGANDA LIMITED (Spirit)
- ESPERANZA DISTRIBUTORS LIMITED (Spirit)
- YAKET INTERNATIONAL LIMITED (Water)
Importers ready to start using digital tax stamps
- BRITISH AMERICAN TOBACCO LTD (Tobacco)
- NILE BREWERIES LTD (Spirits)
- UGANDA BREWERIES LIMITED (Beer)
- CENTURY BOTTLING CO (Wines, Spirits)
- RWENZORI BOTTLING CO (Wine, Spirits)
- HEINEKEN UGANDA LIMITED (Beer)
- VIC LAND DISTRIBUTORS LIMITED (Wine, Spirits)
- UGANDA DUTY FREE SALES LIMITED (Wine, Spirits)
- STEVEN TOBACCO CO.LTD (Tobacco)
- KAVYA INVESTMENTS LTD (Wine, Spirits)
- KARUKA AGENCIES LTD Wine, Spirits
