Local leaders in Kisoro District have commended the Uganda Revenue Authority (URA) for its ongoing efforts to educate and sensitize the public about Digital Tax Stamps (DTS).

Alex Bagaragaza, the Senior Accountant and Financial Liaison Officer for Kisoro District Local Government, appreciated the initiative, noting that it will help clear misconceptions and address challenges surrounding the adoption and usage of tax stamps and other tax related challenges.

Until recently, URA did not have a Domestic Tax (DT) outpost in this southern most, hill-ridden district that neighbours two of Uganda’s key trade destinations of the Democratic Republic of Congo (DRC), through the Bunagana border to the west and Rwanda, through the Cyanika border to the south.

Bagaraza acknowledges that this lack of a local URA presence made one on one tax-related services less accessible, despite URA’s effort to engage the local population with all means necessary, even with local media, which many are glued to.

“The nearest office in Kabale is located over 75 kilometres away,” he says, emphasizing the lengthy journey taxpayers would need to take to make proper one on one consultations, on a specific tax head. “Very few would close their businesses to take the long journey. We are grateful that we now have a DT office here. Services have been brought closer to us.”

Before the establishment of the new URA office, Bagaragaza often found himself overwhelmed with tax-related inquiries from local traders. “With this new office, my workload has significantly reduced,” he admitted. “I look forward to working closely with the URA officers stationed here to support the business community.”

Bagaragaza made these remarks during a meeting with a URA tax education team from Nakawa. The team is conducting a week-long awareness drive across select districts in South-western Uganda, educating businesses on how Digital Tax Stamps work and why they are important.

Introduced in 2019, Digital Tax Stamps are secure labels placed on excisable goods such as beverages, tobacco, and cement. Each stamp contains an encrypted code that allows URA to track the product’s movement throughout the supply chain. Consumers and tax officers can scan these codes to verify the product’s authenticity and tax compliance.

Kamukama Ivan from Tax education explained to attendees gathered at the Bam 2 hotel, that the DTS initiative was introduced to curb revenue losses caused by the influx of unregistered products in the market.

“The Digital Tax Stamps create a level playing field by ensuring that all businesses contribute fairly to the economy,” Kamukama said. “Since its implementation, more manufacturers of excisable goods have been registered, strengthening national revenue collection.”

Jacob Nasasira, the DTS enforcement officer for the Southwestern region, highlighted another key benefit of the system; consumer protection.

“DTS helps shield the public from harmful counterfeit products,” Nasasira stated. “The stamp is a mark of quality assurance, ensuring that only approved goods are available for mass consumption.”

Meanwhile, Richard Mugarura, URA supervisor DTS and Enforcement South-Western, issued a stern warning to wholesalers and retailers who stock excisable goods without the required tax stamps.

“If you are dealing in products that require DTS but fail to comply, you are engaging in illegal activity and will face penalties,” he cautioned, “even transporters of unstamped products will be held accountable, and their vehicles could be impounded.”

URA’s awareness campaign in Kisoro is part of a broader national effort to improve tax compliance, protect consumers, and ensure a fair business environment. With more traders and local leaders embracing the initiative, the DTS solution is expected to further enhance Uganda’s revenue collection and economic stability.

By Dismas Nuwaine

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