URA starts implementing digital tax stamp system

Uganda Revenue Authority (URA) has started implementing the Digital Tax Stamp System (DTSS), which is also called the Digital Tracking Solution (DTS). This was revealed by URA Assistant Commissioner for Corporate and Public Affairs, Ian Rumanyika.

He said  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 31^st January 2020.

“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”, he said.

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.

Rumanyika says; 21 manufacturers and 11 importers have already completed their registration for the use of DTS, adding that; 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 Uganda shillings, whichever is higher.

He added that; 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. 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.

Rumanyika appealed 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, adding: “URA anticipates that products in the market that are not bearing the digital stamp shall be exhausted within two to three months.”