Digital tax stamp training to enhance compliance

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SICPA Uganda, a company dealing in authentication, identification and secure traceability, has trained Uganda Revenue Authority (URA) officials and tax inspectors.

The training is part of a long-term synergy, which has also seen the tax man commence sensitisation clinics on digital tax stamps (DTS) across the country.

This two-way support drive is aimed at strengthening tax compliance and monitoring in the country.

Accordingly, SICPA a DTS solution provider to URA, facilitated at least 63 tax inspectors and offered 240 DTS enforcement gadgets for use in the process.

The trainings that have so far taken place in the eastern and western regions of Uganda have seen 63 inspectors trained, and 240 DTS enforcement gadgets distributed to boost tax compliance monitoring.

URA also commenced a larger initiative to curb fraudulent DTS practices, kickstarting sensitisation clinics across the country in which traders in western, central and eastern Uganda have already been engaged.

The training programme has come in handy as a larger initiative of curbing fraudulent Digital Tax Stamp (DTS) practices is underway with URA cautioning business owners about offences such as reusing tax stamps, failing to activate them, and using counterfeit stamps.

Tororo and Busia

On March 13, 2025, URA conducted a DTS sensitisation in the eastern region towns of Busia and Tororo. The training geared at educating traders on how to install and use the DTS App attracted a cross section of traders.

The URA team, headed by Samuel Emeru Ebyau from the Domestic Taxes Department, took traders through the DTS App and urged them to share the knowledge they have acquired with fellow businesspeople that were unable to attend the training.

DTS were introduced in 2019 as a solution that helps in the collection of local Excise Duty on several gazetted products. These labels not only authenticate the product but also enable URA to track taxes from gazetted excisable goods while the Uganda National Bureau of Standards uses the same stamps to ascertain product conformity to standards.

Emeru informed the taxpayers that when a product is found in the dealer’s shop or stock and it has no stamp, it is considered illegal or smuggled because the supplier and retailer would have flouted the process by selling unstamped goods.

“Unstamped gazette products are not allowed on the market and non-adherence to this attracts a penalty of shillings 50 million. Taxpayers should avoid dealing in unstamped products so that their businesses are not disrupted,” he said, "You must first generate a PRN, make the payment and then collect the stamps, then apply them to the product you deal in. Also note that stamps are picked by the authorised person from the SICPA office”.

Busia station head Wilson Katumba, urged traders to ensure that they only buy stamped products from their respective suppliers or manufacturers.

Mbende session

Speaking during one of the sessions with traders in Mubende district, Richard Mugarura, URA DTS and enforcement supervisor for the southwestern region, highlighted certain practices that are categorised as tax stamp fraud.

These for instance, include refilling bottles without acquiring new stamps, which he said would attract a shillings 50 million penalty or double the tax due on the goods.

Ismail Waiswa, a domestic taxes officer, explained to the traders how the DTS system operates and ensures that products are affixed with both digital stamps for tax purposes (URA) and conformity stamps for safety standards certification (UNBS).

“The system is designed to improve transparency and compliance. I also want to clarify that penalties for failing to comply with the DTS system are intended as deterrents to ensure businesses stay on track," Waiswa said. 

Waiswa also provided guidance on how to handle damaged stamped goods during transit, advising traders to separate and record damaged products, which would allow them to avoid overpaying taxes on the same items.

Senkubuge Allan Peter, Station Head of the URA Mubende service centre, urged manufacturers to report counterfeit goods to URA so they can be seized and handed over to UNBS.

Mubende Municipal Council mayor Eng. Ssekiziyivu Innocent emphasized the importance of planning for taxes to encourage more businesses to comply.’

“It closes down when you fail to plan for taxes and prioritise other business expenses. I want to encourage you to reach out to UNBS for concerns related to substandard goods and URA for all tax-related enquiries.

SICPA Uganda and URA continue to work closely to foster better tax compliance and ensure that businesses across Uganda adhere to tax and safety standards.