Officials from Uganda Revenue Authority (URA) have said they will go ahead with the implementation of the Digital Tax Stamp system (DTSS) also know Digital Tracking Solution despite reports of a court order against it.
Ian Rumanyika, the Ag. Assistant Commissioner Public and Corporate Affairs said the Court interim Order that was issued last Friday 31st January 2020, had expired on 4th February 2020 and Court declined to renew it
“The clear position is that there is no standing Court Order whatsoever stopping the implementation of digital tax stamps and our enforcement measures shall proceed as earlier communicated,” Rumanyika said.
Digital Tax Stamp System (DTSS) also known as Digital Tracking Solution (DTS) is a tax administration solution that is built upon a scalable technology platform that integrates tools, devices and software.
According to URA, the DTSS will enable the marking, tracking, tracing, inspection and verification of excisable products throughout their lifecycle, thereby allowing URA to monitor and control the production, import, export, and distribution of these goods in Uganda.
The deadline for transitional period for all manufacturers or importers of products that were gazetted for Digital Tax Stamps including: – soda, beer, spirits, wine, mineral water and tobacco products (including cigarettes) was 31st January 2020, but Court issued an interim Order stopping implementation of DTSS.
According to URA, 21 manufacturers and 11 importers have already completed their registration for the use of DTS.
“A person who fails to affix a tax stamp on any gazetted product or found in possession of any gazetted product not bearing a tax stamp is liable to pay a penal tax equivalent to double the tax due on the goods or Shs 50 shillings, whichever is higher,” part of the URA notice released a few days back states.
Accordingly, URA field inspectors will be on the lookout for any gazetted goods not bearing a Digital Tax Stamp for immediate seizure and application of necessary sanctions.
According to URA, the DTSS will serve as an objective, verifiable source of data about production and importation volumes and inspection and public verification activities taking place in the market.
“This data will be used by URA to ensure and verify the full and fair taxation of all excisable products. By addressing illicit trade and under-declaration, the DTSS will support URA in closing the existing gap in excise tax collection,” Rumanyika said