Uganda has officially joined regional neighbours including Kenya, Rwanda and Tanzania in implementing Digital Tax Stamps Solution aimed at increasing revenue collections and fighting counterfeits goods.
On Thursday 31st October 2019, the Prime Minister Dr Ruhakana Rugunda convened a meeting of key stakeholders to reach a harmonized position on how to implement Digital Tax Stamps (DTS) Solution.
According to the statement released by the Ministry of Finance and URA on Friday, the meeting was attended by the Uganda Manufacturers Association representatives led by the Chairperson, and officials from Uganda Revenue Authority (URA) and Ministry of Finance and Economic Development.
“The meeting resolved that, with effect from today 1st November 2019, all the tax payers dealing in the gazetted products whether locally manufactured or imported shall have their products affixed with Digital Stamps. However, they have been given a 3-month grace period of up to 31st January 2020 to finish all stock that does not have stamps in the distribution chain,’’ the statement reads in part.
In the same period that installation of stamps affixing technology will take place in the manufacturers’/importers’ production lines.
According URA’s Assistant Commissioner Public and Corporate Affairs, Vincent Seruma, government is expecting to collect Shs150bn in 2019/20 Financial Year after the affixing the technology at various factories.
The joint statement adds that the main focus of the implementation of DTS is to enhance government’s revenues through combating counterfeit products on the market and protect consumers’ health and manufacturers’ earnings as well as enforce compliance through real time and accurate declarations by manufacturers.
“We therefore urge the public to support the implementation given the expected benefits, URA will continually guide both the affected players in the market and the consumers of these products on what to expect going forward,” the statement concludes.
By Amon Baita