Local leaders in Kisoro District have commended the Uganda Revenue Authority (URA) for its ongoing public education and sensitization campaign on Digital Tax Stamps (DTS). The initiative is aimed at clarifying misconceptions and addressing challenges surrounding the adoption and use of the stamps and other tax-related issues.
Alex Bagaragaza, the Senior Accountant and Financial Liaison Officer for Kisoro District Local Government, expressed his appreciation for the URA’s efforts. He noted that the campaign will be instrumental in resolving misunderstandings and challenges associated with tax stamps and other tax matters.
Historically, URA lacked a Domestic Tax (DT) outpost in this southernmost, hilly district, which borders two of Uganda’s key trade partners: the Democratic Republic of Congo (DRC) via the Bunagana border to the west, and Rwanda via the Cyanika border to the south.
Bagaragaza acknowledged that the absence of a local URA office made direct, tax-related services difficult to access, despite URA’s efforts to engage the local population through various means, including local media, which enjoys widespread listenership.
“The nearest office in Kabale is over 75 kilometers away,” he explained, highlighting the considerable distance taxpayers had to travel for in-person consultations on specific tax matters. “Very few would close their businesses to make such a long journey. We are grateful that we now have a DT office here. Services have been brought closer to us.”
Prior to the establishment of the new URA office, Bagaragaza often found himself overwhelmed with tax-related inquiries from local traders. “With this new office, my workload has significantly reduced,” he admitted. “I look forward to working closely with the URA officers stationed here to support the business community.”
Bagaragaza made these remarks during a meeting with a URA tax education team from Nakawa. The team is currently conducting a week-long awareness drive across select districts in Southwestern Uganda, educating businesses on the functionality and importance of Digital Tax Stamps.
Introduced in 2019, Digital Tax Stamps are secure labels affixed to excisable goods, such as beverages, tobacco, and cement. Each stamp contains an encrypted code that allows URA to track the product’s movement throughout the supply chain. Consumers and tax officers can scan these codes to verify the product’s authenticity and tax compliance.
Kamukama Ivan from Tax Education, speaking to attendees at the Bam 2 hotel, explained that the DTS initiative was implemented to curb revenue losses caused by the influx of unregistered products into the market.
“The Digital Tax Stamps create a level playing field by ensuring that all businesses contribute fairly to the economy,” Kamukama stated. “Since its implementation, more manufacturers of excisable goods have been registered, strengthening national revenue collection.”
Jacob Nasasira, the DTS enforcement officer for the Southwestern region, emphasized another key benefit of the system: consumer protection.
“DTS helps shield the public from harmful counterfeit products,” Nasasira said. “The stamp is a mark of quality assurance, ensuring that only approved goods are available for mass consumption.”
Meanwhile, Richard Mugarura, URA supervisor of DTS and Enforcement for the Southwestern region, issued a stern warning to wholesalers and retailers who stock excisable goods without the required tax stamps.
“If you are dealing in products that require DTS but fail to comply, you are engaging in illegal activity and will face penalties,” he cautioned. “Even transporters of unstamped products will be held accountable, and their vehicles could be impounded.”
URA’s awareness campaign in Kisoro is part of a broader national effort to improve tax compliance, protect consumers, and ensure a fair business environment. With increasing acceptance of the initiative among traders and local leaders, the DTS solution is expected to further enhance Uganda’s revenue collection and economic stability.
