High court Deputy Registrar Agnes Nkonge has issued an order staying the deadline for implementation of Digital stamps by Uganda Revenue Authority (URA)
The deadline had been fixed for January 31st 2020 but with the new interim order issued on Friday, URA and its agents are barred from implementing it.
“This order shall remain in force until 4th February 2020 when the main application for stay shall be heard inter parties ” ruled the Registrar
Sylvester Kamuli a concerned citizen and consumer of drinks that require digital stamps petitioned court saying that the implementation of this solution in a manner which is not effective and unlawful threatens and affects the rights of consumers and the general public at large.
In November last year Government through URA gave all Manufacturers of items like water, soda, wine, Spirits and Tobbaco a months grace period up to January 31, 2020 to finish up all stock in the circulation without digital tax stamps.
In this period which elapsed on Friday all Manufacturers were expected to install stamp fixing technology to ensure smooth operations.
Most of the manufacturers noted that although this new process will increase Government’s revenue , it will affect them through increasing of their production costs.
The Digital tracking was introduced by URA to solve challenges in the tax collection sector like counterfeit products, illicit trade and unfair competition in the market.