KAMPALA - The World Bank, in partnership with the Ministry of Finance, Planning and Economic Development, and the Uganda Revenue Authority (URA), launched the 25th Uganda Economic Update on September 30 under the theme “Increasing Uganda’s Fiscal Space through Improved Revenue Mobilisation and Enhanced Efficiency of Spending and Service Delivery.”
The report highlights how technology and improved governance can help Uganda close its revenue gap and strengthen service delivery.
Speaking during the launch of the Update, Patrick Ocailap, the Acting Permanent Secretary and Secretary to the Treasury, underlined the role of digital systems in Uganda’s revenue mobilization drive.
“The use of digital systems is great for our country and will help URA collect more revenue, such as digital stamps on everyday products that we find in the supermarkets,” he said.
“We need to broaden the tax base instead of increasing taxes on the people of Uganda,” he added.
Introduced in 2019, the Digital Tax Stamps (DTS) are designed to protect the supply chain of excisable goods such as beer, spirits, wine, soda, bottled water, cement, and tobacco. Each product is affixed with a unique stamp that can be traced and authenticated, enabling URA to verify tax compliance and curb illicit trade.
The system is implemented in Uganda by SICPA Uganda under the aegis of URA and the Ministry of Finance. Manufacturers and importers are required to use the stamps as their goods move from production or importation into the market.
By mid-2023, URA reported that more than 1,100 manufacturers and over 300 importers had enrolled on the platform.
This represented a significant rise compared to fewer than 200 participants when the program began in 2019. Officials say that compliance has steadily improved, with a 23 percent increase in manufacturers registered in the first half of 2023 alone.
Francisca Ayodeji, the World Bank Country Manager, pledged commitment to supporting Uganda in its efforts to strengthen domestic mobilisation and compliance.
“We recognise that expanding the tax base and improving compliance are critical to creating the fiscal space needed to invest in priority sectors such as health, education, and social protection. By working together, we can ensure that reforms in revenue mobilisation and expenditure efficiency translate into tangible improvements in service delivery,” she said.
The World Bank’s latest economic update underlines that revenue mobilisation must be paired with efficient and transparent public spending. Collecting more taxes alone will not create the fiscal space Uganda requires unless funds are directed to priority areas and service delivery improves.
Government projections suggest the economy could grow by over 6 percent in the current financial year, with further expansion in 2026 if reforms are implemented effectively.
Digital tax stamps are now firmly positioned as a cornerstone of Uganda’s revenue strategy.
If sustained, URA's digital reforms can turn digital systems into a catalyst for stronger revenues, smarter public investment, and renewed confidence in Uganda’s growth path.