URA Hails Manufacturers as Digital Tax Stamps Boost Revenue
The Uganda Revenue Authority (URA) has commended manufacturers for embracing the Digital Tax Stamps (DTS) system, saying the technology has strengthened excise duty compliance and contributed to a near 40% growth in domestic revenue collections.
DTS, implemented by SICPA Uganda under URA, has become a key technology platform in the fight against tax evasion, illicit trade and under-declaration of production.
The system combines secure digital stamps with authentication and traceability technology, enabling authorities to identify genuine products, track production and monitor goods as they move through the market.
Speaking during an engagement with members of the Uganda Manufacturers Association in Kampala on Thursday, URA Commissioner General John Musinguzi Rujoki, through Commissioner for Corporate Services Richard Kariisa, thanked manufacturers for their contribution to national development through tax compliance.
Kariisa said Uganda’s revenue target currently stands at Shs46.6 trillion, making cooperation between the tax body and the business community critical to achieving the target.
“On behalf of the CG, I thank you for the contribution to Uganda’s development through tax compliance. Your continued commitment enables government to deliver on social and critical services as well as invest in national development priorities,” Kariisa said.
He said URA would continue improving systems such as DTS and the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) to promote efficiency, transparency and fairness in the tax system.
DTS Closes Tax Loopholes
URA said DTS has helped close long-standing tax evasion loopholes, including the under-declaration of production volumes.
The system was introduced in 2018 under the Domestic Revenue Mobilisation Strategy to improve excise duty collection, protect government revenue, combat illicit products and safeguard consumers.
Coupled with systems such as EFRIS, DTS supported a near 40% growth in domestic revenue collections during the 2024/25 financial year, according to URA.
More than 1,680 manufacturers and importers are currently registered on the DTS portal, bringing hundreds of previously informal or non-compliant producers into the tax system.
Felix Niwagaba, who is in charge of Digital Tax Stamps, urged manufacturers to recognise the benefits of the system, including improved tracking of products and protection against counterfeiting.
“We have been on DTS for six years and still going; manufacturers will be our witnesses. It is advantageous in many ways. They are now able to track their products, you do not lose stock, and other people cannot mimic your product anymore,” Niwagaba said.
13 Products Covered
DTS has been implemented on 13 categories of products to enable URA to track production, establish quantities sold and levy the correct excise duty.
They include beer, spirits, wine, other alcoholic beverages, soda, fruit and vegetable juice, mineral and bottled water, other non-alcoholic beverages, fermented beverages, tobacco products, cement, bulk cement, sugar and cooking oil.
Niwagaba said the stamps are provided to manufacturers and importers at a subsidised price and that the cost is an allowable deduction for income tax purposes, provided proper records are maintained.
He urged taxpayers to maintain complete records to enable URA to make informed tax assessments.
A DTS stamp costs Shs30 for beer, Shs60 for spirits and wine, Shs13 for mineral water, Shs17 for soda, Shs135 for cement and Shs75 for tobacco.
Manufacturers are also issued EFRIS invoices when purchasing the stamps, which can be retrieved for income tax return purposes.
Consumers Can Check Products
URA has developed several tools to help verify DTS stamps and identify compliant products.
These include the Kakasa Inspector tool used by URA enforcement officers, the Kakasa Stamp App that allows consumers and buyers to verify products in shops and supermarkets, and the Kakasa validator used by distributors and stockists.
SICPA Uganda has also supported URA’s enforcement efforts through training and provision of DTS enforcement devices to strengthen compliance monitoring across the country.
Niwagaba, however, acknowledged that enforcement remains a challenge because URA teams have to cover the entire country.
“Our coverage is limited on the ground, yet we have to move around the whole country,” he said.
He warned taxpayers against attempting to bypass the system, saying products found on the market can still be traced back to their source.
“Taxpayers use a lot of tactics and can bypass; however, it does not mean you have survived. The product will be on the shelf, and we shall ask you how it found itself on the market,” Niwagaba said.
He said URA had also strengthened its penalty regime to protect compliant manufacturers and create a level playing field.
“The penalty will not get you if you know what is supposed to be done, so do the right thing,” he said.
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