URA team enforcing compliance with the Digital Tracking System (DTS) and the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) in the Kampala Central Business District (CBD).
Uganda Revenue Authority (URA) has collected Shs6.8 billion shillings within one week of enforcing compliance with the Digital Tracking System (DTS) and the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) in the Kampala Central Business District (CBD).
Sandra Kaitare, the Assistant Commissioner of the Petroleum and Mining Division, who is overseeing these operations made this revelation noting that the staggering sum accounts for penalties levied on defaulters of both systems.
“We are focusing on EFRIS because we want taxpayers who are registered for VAT to issue invoices in the hope that ultimately, we will be able to increase revenue collections for VAT,” she explained.
“The DTS enforcement also aims to ensure that every manufacturer and producer actually stamps and activates the stamp. If the stamps are not activated, it is as good as not putting it there in the first place, yet our goal is to make sure that all products on the market are properly stamped,” Kaitare added.
Since last year, the URA tax education team has been sensitizing taxpayers about EFRIS and DTS, the benefits of compliance and the impending consequences of non-compliance. All those that fail to comply with the systems are subject to hefty fines.
“VAT taxpayers that defy EFRIS have to pay UGX 6 million, which can be charged once a month from businesses and individuals. For DTS, if the products are not stamped, the manufacturer is penalized and the products are seized until they are properly stamped,” said Kaitare.
“The penalty for either failing to stamp or activate the DTS is UGX. 50 million. Unlike the lack of an invoice, which attracts punishment once a month, failure to stamp products attracts a fine every time we meet unstamped products all over the streets even though they all belong to a specific company,” continued Kaitare.
The possessor of the products that have no stamp is also liable to pay a fine of Shs. 50million. However, the seasoned tax expert emphasized that the only obligation of the possessor of the products is to ensure that the products they buy have a DTS stamp.
Kaitare further clarified that the goal of this exercise is to achieve taxpayer compliance.
“Whereas we are penalizing, the ultimate goal of this enforcement is to ensure normal flow of business and not to penalize anyone. The more people comply, the more normal flow we receive and the less penalties. The success of this project is finding fewer people to penalize,” she stated.
The CBD is Uganda’s major business hub and includes the political divisions of Kampala notably, Kampala Central, Kawempe, Makindye, Nakawa, and Lubaga. The neighboring districts of Wakiso, Entebbe, and Mukono have also been given the first priority given their close business ties and nearness to the CBD.
According to Kaitare, the foot soldiers have also been deployed at several checkpoints across the country, including amongst others, Karuma Bridge, Pakwach Bridge, Jinja Bridge, Mityana checkpoint at the police station, and the Mbarara bridge.
“The aim of the foot soldiers is to check all products crossing to and from upcountry to the CBD. The goods of a VAT-registered taxpayer who makes a sale or supply without a clear e-invoice are seized until the trader issues one. The DTS is also monitored to ensure compliance,” said Kaitare.
This enforcement which started last week with a team of 201 officers is going to continue for six long months.
