By Moses Male
In 2019, URA introduced digital tax stamps to combat illicit trade, seal revenue leakages, boost collection and increase efficiency in managing taxpayer compliance. However, since introduction of DTS, a number of vices continue to crop among taxpayers to avoid tax. URA through the Domestic taxes office has deployed 43 staff at different factories of Sugar and Spirits.
This operation is being conducted by the Factory Monitoring Project to improve Local Excise Duty(LED) declarations from manufacturers and also reduce the number of unstamped products on the market. The project is also expected to close identified tax leakages and improve tax compliance of the sector.
During the flagging off ceremony, Sarah Chelangat, the Commissioner Domestic Taxes explained that the deployment at factories will monitor the behavior of manufacturers to guide on enforcement, audits and investigations for prosecution.
“We expect levels of compliance to improve hence increased LED, VAT declarations which will then translate to corporate tax,” She emphasized.
Chelangat also urged staff to be on the lookout for ready to drink spirits that are sold on the black market without stamps because they facilitate illicit trade.
In order to ensure success of the project, staff have been advised to maintain their integrity and ensure all revenues are collected.
Robert Amanya, the Ag. Manager DTS revealed that the operation is expected to contribute significant revenues and reduce on the annual loss of UGX 2 billion to illicit trade.
