The Uganda Revenue Authority (URA) has successfully collected UGX 6.8 billion within a week by enforcing compliance with the Digital Tracking System (DTS) and the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) in the Kampala Central Business District (CBD).
Sandra Kaitare, the Assistant Commissioner of the Petroleum and Mining Division, is overseeing these operations and revealed that the substantial amount comprises penalties imposed on defaulters of both systems.
Kaitare highlighted the focus on EFRIS, emphasizing the importance of VAT-registered taxpayers issuing proper invoices to enhance revenue collections. The DTS enforcement is aimed at ensuring manufacturers and producers activate the stamp, with penalties for non-compliance. The URA tax education team has been educating taxpayers on EFRIS and DTS, emphasizing compliance benefits and consequences for non-compliance, including hefty fines.
VAT taxpayers failing to comply with EFRIS face a monthly penalty of UGX 6 million, while DTS violations incur a UGX 50 million penalty for unstamped products. The possession of products without stamps also attracts a Shs. 50 million fine. Kaitare clarified that the goal is taxpayer compliance, and while penalties are enforced, the ultimate objective is to facilitate the normal flow of business.
The CBD, Uganda’s major business hub, along with neighboring districts, has been prioritized for enforcement due to close business ties. Foot soldiers have been deployed at checkpoints nationwide, including Karuma Bridge, Pakwach Bridge, Jinja Bridge, Mityana checkpoint, and Mbarara bridge, to monitor products moving to and from the CBD. Goods without clear e-invoices are seized until compliant invoices are issued, and DTS compliance is closely monitored.
The enforcement, initiated with 201 officers, is set to continue for six months, aiming to achieve widespread taxpayer compliance and a smoother business flow.
