URA closes bakery in Nansana over non-compliance

Uganda Revenue Authority has tightened the noose on non-compliant taxpayers. Early this month, the taxman sealed off Tendo Bakery due to non-compliance with the Digital Tracking Solution (DTS) as required by law.

Bosco Tumwine, the Ag. Manager DTS explained that the URA team was informed about a factory that was distributing kombucha drinks without digital stamps.

“Our team got information from an informer that Tendo Bakery was manufacturing Kombucha in Nansana, Wakiso, and distributing it without affixing digital stamps. On 2nd February 2024, we swung into action and issued a seizure notice with a penalty of UGX 50M and sealed off the place,” said Tumwine.

He noted that 684 cartons of Embogo kombucha drink were found inside the premises unstamped and 3,000 cartons had been loaded on a Fuso truck registration UAZ 289W ready to be transported for distribution.

“We sealed off the premises and impounded the Fuso truck with the unstamped drinks, and offense management is ongoing. We will only open the premises once the penalty has been cleared,” Tumwine emphasized.

Section 19B of the Tax Procedures Code Act stipulates that a taxpayer who fails to affix a tax stamp on goods prescribed under the law is liable to a penal tax equivalent to double the tax due on goods of UGX 50M, whichever is higher.

Tumwine noted that the proprietor of Tendo Bakery agreed to pay the penalty and partly cleared UGX 15M for the release of the truck, pending UGX35M to be paid before the end of this financial year.

Early this year, URA commissioned a special revenue mobilization project to close revenue gaps in Rental tax, Value Added Tax and Digital Tax Stamps.

By Kamugisha Kabahweza Allan MMU/PCA

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