The Uganda Revenue Authority (URA) called for cooperation and collaboration with Uganda Breweries (UBL) to address issues impacting the alcohol industry in a recent meeting held at Nakawa. Both parties discussed ways to enhance their working relationship and resolve concerns raised by the industry, particularly regarding proposed Alcohol Control Bills and the cost of digital tax stamps.
UBL’s Managing Director, Andrew Kilonzo, highlighted various challenges during the meeting, including the implications of the recently introduced Alcoholic Drinks Control Bill and the high cost of digital tax stamps on beverages, especially spirits.
John Musinguzi, the Commissioner General of URA, acknowledged the difficulties faced by taxpayers and urged further discussions to clarify the bills for effective revenue administration.
Kilonzo expressed concerns that the proposed bills could compromise alcohol quality and exacerbate the problem of illicit alcohol, which already plagues the industry.
“URA should differentiate between spirits and non-spirits for taxation purposes and maintain the current system for both locally produced and imported products,” Kilonzo emphasized. He also called for a reduction in the cost of tax stamps for spirits.
Musinguzi suggested collaborative efforts between URA and UBL to monitor the application of digital tax stamps by illicit alcohol producers, as they undermine the efficiency of the Digital Tax Stamps (DTS) solution. He proposed that the alcohol industry shares intelligence to identify and intercept trucks carrying unstamped products.
During the meeting, Musinguzi confirmed that URA has initiated negotiations with the stamp supplier SICPA to lower the cost of stamps for spirits, in accordance with the existing contract. However, he emphasized URA’s commitment to timely resolution of negotiations and warned against further delays.
