Uganda’s fight against smuggling and illicit trade in excisable goods has found a powerful ally in technology. The Digital Tracking Solution (DTS) is transforming how the Uganda Revenue Authority (URA) tracks and taxes high-risk products like alcohol and tobacco, closing gaps that previously enabled tax evasion and economic sabotage.
Before DTS, unregulated production and widespread smuggling of excisable goods drained national revenue and undermined fair competition. DTS now enables real-time tracking of goods from manufacturing through the supply chain to point-of-sale, ensuring that every taxable product is declared and verified. The system not only combats smuggling but also enhances consumer safety by verifying product authenticity.
Installed and managed by SICPA Uganda - DTS integrates directly with URA’s Tax Management System. It marks products at production facilities and customs-controlled zones, instantly transmitting data that allows for real-time oversight. These markings, embedded with physical and digital security features, provide forensic-level evidence to support fraud investigations and prosecutions.
DTS has helped URA identify fraud “hot spots” across the supply chain and optimize enforcement operations. The system has also streamlined manufacturers’ operations by enabling better inventory control and compliance, making it a win for both tax authorities and the private sector.
The system’s success is evident in Uganda’s latest fiscal performance. URA collected UGX 15,248.99 billion in the first half of FY 2024/25 - Shs 322 billion above target. Commissioner General John R. Musinguzi attributed this success to compliant taxpayers and robust administrative tools, including DTS. “With technology, intelligence, and professionalism, we are confident we’ll meet our targets,” he said.
Globally, the World Bank estimates that 86% of low-income countries collect less than 15% of GDP in taxes - a level insufficient for sustainable development. Uganda’s investment in systems like DTS sets it apart.
As URA prepares to meet its Shs 16,442.32 billion target for the second half of the year, DTS remains central to its strategy - a powerful revolution modernizing the tax system and safeguarding Uganda’s economic future.