Uganda Revenue Authority (URA) has said implementation of Digital Tax Stamps will go on urging manufacturers to embrace the system that seeks to fight illicit trade and counterfeit.

The implementation of Digital Tax Stamps, according to details contained in the government gazette, will start on November 1 and manufacturers will have a grace period of three months within which they must install digital stamp equipment.

Speaking in an interview, Mr Vincent Seruma, the URA assistant commissioner for public and corporate affairs, said Uganda was not the first in the region to embrace Digital Tax Stamps, noting it has been implemented across the region including in Tanzania, Rwanda and Kenya.

“We would like to urge stakeholders and manufacturers to embrace the Digital Tax Stamps as they are a critical tool in improving accountability of production [as well as protecting] local manufacturers,” he said, adding that the system will be beneficial not only to the tax agency but to also manufacturers.
The gazette comes amid serious concerns with manufacturers urging government to come out clearly on who will bear the cost of installing digital tax equipment.

Raised concerns
Last Thursday, manufacturers, under Uganda Manufacturers Association, wrote to Trade Minister Amelia Kyambadde, seeking government’s commitment to cover the cost of implementing Digital Tax Stamps.
“…the affected members would wish to have unequivocal confirmation from government indicating that government shall pay for the costs associated with the implementation,” the letter reads in part.
The manufacturers also urged government to prevail over URA not to victimise Uganda.

Manufacturers Association (UMA) members opposed to Digital Tax Stamps, noting that the lack of cohesion was also resulting into unending tensions with URA.
UMA also addressed its discomfort with URA’s issuance of ultimatums, noting there was need to reach a properly harmonised position on a number of concerns.
However, Mr Seruma, last week told Daily Monitor that the cost of installing Digital Tax Stamps “will be born in principle by the manufacturers.”