By Irene Kabakama
Uganda Revenue Authority has called for cooperation and collaboration from Uganda Breweries (UBL) to tackle issues that affect the alcohol industry. In the meeting held at Nakawa, the two bodies discussed ways in which to improve the working relations and also iron out issues raised by the alcohol industry stemming from the proposed Alcohol control bills and the cost of digital tax stamps.
The UBL Managing Director, Andrew Kilonzo fronted several challenges including the recently presented Alcoholic Drinks Control Bill and the high cost of digital tax stamps on beverages, particularly spirits.
The URA Commissioner General, John Musinguzi acknowledged the challenges faced by taxpayers and requested the teams to hold further discussions to ensure clarity on the bills for effective revenue administration.
Kilonzo noted that the proposed bills would not only jeopardize the quality of alcohol but also contribute to the growth of illicit goods, which is already a major problem faced by the alcohol industry.
“URA needs to separate spirits from non-spirits for tax purposes and maintain the status quo for both local and imported products,” said Kilonzo. He also urged URA to consider reducing the cost of tax stamps for spirits.
In further discussions, Musinguzi requested UBL to collaboratively monitor the application of digital tax stamps by illicit alcohol players because they are a hindrance to the efficiency of the DTS solution. He also suggested that the alcohol industry shares intelligence that will help to identify and stop trucks carrying unstamped products.
In the meeting, Musinguzi confirmed that URA has commenced negotiations with the stamps supplier SICPA to reduce the cost of stamps for spirits, as per the running contract. However, he stressed that URA will not tolerate any further delays and will ensure that all negotiations are concluded within the agreed timelines.
