The Uganda Revenue Authority (URA) has destroyed more than 100 tons of contraband goods that lacked Digital Tax Stamps (DTS), in a continued effort to enforce tax compliance and safeguard public health.
The destruction took place at Luweero Industries Ltd, a government-certified destruction facility located in Nakasongola District. This action aligns with the enforcement of the DTS policy, which was introduced in 2019 to combat tax evasion and promote market integrity.
The destroyed goods included juices, soft carbonated drinks, alcoholic and non-alcoholic beverages, and cement. These products were seized for failing to meet tax obligations and health and safety standards.
“As URA, our mandate is to collect revenue for national development. Goods without Digital Tax Stamps signify non-compliance,” said Mugema Stephen, URA’s DTS Enforcement Officer. “DTS also serves as a safety measure—goods not certified by the Uganda National Bureau of Standards (UNBS) are ineligible for stamping.”
The DTS policy aims to level the playing field in the marketplace by eliminating unfair competition from non-compliant traders. Mugema urged business owners to comply with DTS regulations to avoid financial losses and legal penalties. He also encouraged the public to refrain from purchasing unstamped products and to report any violations to URA.
Introduced as a digital innovation, DTS enhances the Uganda National Bureau of Standards’ efforts to enforce quality standards while simultaneously combating tax evasion.
Digital Tax Stamps are secure labels applied to excisable goods such as beverages, tobacco, and cement. These stamps contain unique security features and scannable codes that verify the authenticity of products and confirm whether taxes have been paid.
The DTS system serves as a monitoring and tracking tool to prevent smuggling, counterfeiting, and tax evasion, while supporting fair competition and strengthening domestic revenue mobilization.
“By authenticating the security features of the activated digital stamp and using its unique identifier, citizens can access traceability data and product information electronically,” URA stated. If a product bearing a DTS appears suspicious, consumers are encouraged to report it via URA’s mobile apps or SMS channels.
Why Digital Tax Stamps (DTS)?
- Combat Illicit Trade: DTS helps fight the circulation of illicit, substandard, and counterfeit products, protecting consumers from potential harm.
- Promote Fair Competition: It fosters a competitive market environment by penalizing illicit actors and supporting compliant businesses.
- Empower Citizens: Through the KAKASA smartphone tool, consumers can verify products by scanning the digital stamp, effectively becoming product inspectors.
- Protect Government Revenue: DTS helps prevent tax evasion and smuggling, ensuring increased revenue to fund public services.
- Ensure Product Traceability: The system enhances transparency and compliance through comprehensive product tracking.