Traders Urged to Embrace Digital Tax Stamps as URA Enhances Enforcement

The initiative, which has so far covered Eastern and Western Uganda, has seen 63 inspectors trained and 240 DTS enforcement gadgets distributed.

SICPA Uganda, a global leader in authentication, identification, and secure traceability has enhanced efforts with the Uganda Revenue Authority to facilitate traders, and tax inspectors through comprehensive nationwide training on Digital Tax Stamps (DTS) in a bid to strengthen tax compliance in the country.

The trainings that have so far taken place in Eastern and Western Uganda have seen 63 inspectors trained, and 240 DTS enforcement gadgets distributed to boost tax compliance monitoring.

This training program is taking place in parallel to a larger initiative to curb fraudulent Digital Tax Stamp (DTS) practices, with URA cautioning business owners about offenses such as reusing tax stamps, failing to activate them, and using counterfeit stamps.

During a sensitization session in Mubende District, Richard Mugarura, URA Supervisor for DTS and Enforcement in the Southwestern region, underscored the risks of tax stamp fraud.

“Refilling bottles without acquiring new stamps is illegal and attracts a penalty of Shs50 million or double the tax due on the goods,” he cautioned.

The Eastern region has also seen similar outreach efforts, with traders in Busia and Tororo receiving training on the KAKASA DTS App, which simplifies the installation and usage of tax stamps.

Leading the session, Samuel Emeru Ebyau from URA’s Domestic Taxes Department emphasised that Digital Tax Stamps, introduced in 2019, serve a dual purpose—enabling URA to track excise duty while the Uganda National Bureau of Standards (UNBS) ensures product conformity.

“Unstamped gazetted products are not allowed on the market, and non-adherence attracts a penalty of Shs50 million,” Emeru warned.

Ismail Waiswa, another Domestic Taxes Officer, explained the DTS system, highlighting its role in improving transparency and compliance.

He clarified that penalties are deterrents to ensure businesses follow regulations and guided traders on handling damaged stamped goods to avoid unnecessary tax payments.

At the Mubende engagement, URA’s Allan Peter Senkubuge urged manufacturers to report counterfeit goods to ensure their seizure and removal from the market.

Meanwhile, Mubende Municipal Council Mayor Innocent Ssekiziyivu stressed the importance of tax planning.

“No business has ever closed down because of taxes,” Eng Ssekiziyivu said. “It closes down when you fail to plan for taxes and prioritize other expenses.”

In Busia, Wilson Katumba, URA’s station head, advised traders to ensure they only buy stamped products.

“Your role as a trader is to engage the manufacturer to apply Ugandan Digital Tax Stamps at designated points along the value chain,” he said.

SICPA Uganda and URA remain committed to fostering better tax compliance and ensuring that businesses adhere to both tax and safety standards.