Uganda Strengthens Tax Compliance with Digital Tax Stamps Initiative

Summary:

• Uganda is using Digital Tax Stamps (DTS) to enhance tax compliance, reduce evasion, and ensure product authenticity. Introduced in 2019, the initiative aims to promote transparency and fair competition. The government emphasizes the importance of taxes in national development, with DTS playing a key role in sustainable economic growth.

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The Ugandan government has reaffirmed its dedication to using digital innovations to improve tax compliance, with Digital Tax Stamps (DTS) playing a central role in this effort. Introduced in November 2019, DTS have become vital in promoting transparency, reducing tax evasion, and ensuring product authenticity in the market.

These secure labels, applied to excisable goods such as beverages, tobacco, and cement, contain encrypted codes that can be scanned to verify tax compliance and authenticity, enabling both the Uganda Revenue Authority (URA) and consumers to monitor goods through the supply chain. The initiative, implemented in partnership with global secure tax technology leader SICPA, aims to combat counterfeiting and ensure fair market competition.

During the 2024 URA Taxpayers’ Appreciation Day, Finance Minister Matia Kasaija highlighted the importance of taxes as investments in the nation’s future, supporting education, healthcare, and infrastructure. He urged businesses to embrace the DTS system as a sign of commitment to Uganda’s development and a step toward overcoming economic challenges.

URA Commissioner General John Rujoki Musinguzi discussed the progress in tax collection and compliance, emphasizing the role of DTS in expanding the tax base and ensuring fairness. With Uganda’s economy projected to grow by 6% in FY 2024/25, driven by sectors like agriculture, manufacturing, and services, the DTS system remains a key tool for sustainable growth and achieving national economic goals.