Ian M. Rumanyika, the URA Ag. Assistant Commissioner Public and Corporate Affairs holding some of the confiscated products
The Uganda Revenue Authority (URA) has recovered Shs3.5 billion in revenue from companies flouting Digital Tracking Solution (DTS) guidelines.
This follows the arrest of officials and staff of 33 Digital Tracking Solution (DTS) flouters. These were caught manufacturing, selling, exporting or distributing gazette goods without the tax stamp. The operation that led URA officials to Parambot Distillers Kikagati Customs, Ntuura Customs, Bee De Eff and Nabugabo Spirits among others was carried out between February and March 2021.
According to Ian M. Rumanyika, the Acting Assistant Commissioner Public and Corporate Affairs at URA, Parambot Distillers, operating in Western Uganda had a fake stamp on Royal Vodka while Kikagati had 18 cartons of Ice and Soldier Gin unstamped.
In Masaka, Nabugabo Spirit had 61 cartons of unstamped spirits. Ntuura Customs had 15 cartons of unstamped Azam Malt made in the neighboring Tanzania. An operation in Busia led to recovery of 140 cartons X 24 bottles X 205mls of Forest Ice Gin, 117 cartons X 12 bottles X 300 mls of Babalo Mixed Fruit Wine and 22 cartons X 24 bottles X 200mls of Songa Waragi. In Hoima, 100 cartons of unstamped Club One flavored gin was confiscated. 125 Bombas X 10 packets X 20 sticks of Super match (King Size) Cigarettes made in South Sudan were confiscated between the February – March 2021 period.
In fact, 10, 000 bombas X 10 packets X 20 sticks were confiscated in the West Nile and Northern Region areas and in URA’s most latest operation carried out on Tuesday in Mengo, Rubaga Division in Kampala saw 2000 unstamped products confiscated from Bee De Eff, a local manufacturer.
“By March 2021, URA had recovered over UGX 3.5bn in revenue as a result of netting 33 Digital Tracking Solution (DTS) flouters who were caught manufacturing, selling, exporting or distributing gazetted goods without the tax stamps,” Rumanyika said.
DTS was operationalised in November 2019 where six products, namely beer, soda, water, wines, spirits, and cigarettes were gazetted by the minister to apply digital tax stamps. This was mandated for both manufacturers and importers of the said goods.
According to Rumanyika, the culprits, in an attempt to manipulate the production line, decided to by-pass the system by sending out products using unbranded vehicles.
“As a result, genuine local manufacturers were overwhelmed by the influx of fake yet cheap products on the market. Against this background, URA, after a thorough sensitization campaign during the Covid-19 lockdown period moved to stage spot check operations,” Rumanyika said.
The sensitization, according to URA, was followed by a grace period.
Rumanyika told the Business Focus that the operation started two months ago.
Section 19 of the Tax Procedure Code (TPC) stipulates that a penalty of Shs50 million or 50% of the value of unstamped goods whichever is higher, is served for failure to affix a digital stamp on a gazetted product.
By Francis Otucu
