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Uganda Reaffirms Commitment to Digital Tax Innovations with DTS at the Forefront

Mourice Muhoozi by Mourice Muhoozi
7 months ago
in News
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The Government of Uganda has once again reinforced its commitment to harnessing digital technologies to enhance tax compliance, with Digital Tax Stamps (DTS) emerging as a central component in this ongoing effort.

Digital Tax Stamps are secure labels placed on excisable goods such as beverages, tobacco, and cement. These labels contain encrypted codes that can be scanned to verify a product’s authenticity and ensure that it complies with tax regulations. This technology has allowed both the Uganda Revenue Authority (URA) and consumers to track products through the entire supply chain, ensuring that goods in the market are legitimate and properly taxed.

The stamps, which were introduced in November 2019, have proven instrumental in promoting transparency, curbing tax evasion, and safeguarding the integrity of goods available in the Ugandan market.

The implementation of DTS was made possible through a strategic partnership between the Government of Uganda and SICPA, a global leader in secure tax stamp technologies. This collaboration was a direct response to the increasing challenges posed by tax evasion and counterfeiting, which had undermined fair competition and impacted the country’s revenue collection.

At the URA Taxpayers’ Appreciation Day 2024, held under the theme “Honouring Pillars for National Growth,” Finance Minister Matia Kasaija highlighted the importance of taxes, not just as a financial duty, but as a crucial investment in the future of Uganda. In his speech, Kasaija praised taxpayers for their resilience and unwavering support for national development, saying, “Taxes fund the education of our children, ensure quality healthcare for our communities, and build infrastructure that connects people, businesses, and opportunities.”

The Digital Tax Stamps initiative, he noted, directly supports this vision by fostering greater trust in Uganda’s tax administration. With the ability to track tax compliance in real time, the DTS system is reducing the flow of illicit trade and counterfeit products into the market, thus protecting consumers and ensuring that businesses contribute their fair share of taxes.

Minister Kasaija described tax compliance as an act of patriotism. He urged businesses to fully embrace the DTS system, viewing it as part of their broader commitment to national development. “Complying with tax obligations demonstrates trust in the system and a collective responsibility to uplift Uganda from the economic challenges we have faced, including the aftermath of the COVID-19 pandemic,” Kasaija remarked. He also asked traders to approach government for low-interest loans to boost their businesses.

The significance of the Digital Tax Stamps was further emphasized by the Commissioner General of URA, John Rujoki Musinguzi. He spoke of the expanding tax base and the substantial improvements in revenue collection since the introduction of DTS. Musinguzi highlighted the success of the DTS initiative in fostering fairness and accountability within Uganda’s tax system, noting how it has improved compliance across various industries.

Looking ahead, Uganda’s economy is expected to grow by 6% in the fiscal year 2024/25, driven by advancements in sectors such as agriculture, manufacturing, and services. Minister Kasaija credited part of this growth to the increasing integration of technology into governance, including the digital tax systems like DTS, which have played a key role in enhancing transparency and boosting the country’s economic resilience.


Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
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