Uganda Revenue Authority (URA) has added cement and sugar to commodities that will require digital stamps before they hit the market, adding them to beer, soda, spirits, wines, mineral water and tobacco products.
According to URA, this will be put into practice starting April 1. This will affect both imported and manufactured goods.
URA says, to ease implementation, all premises that deal in the aforementioned goods will be registered for Excise Duty and dealers have been asked to ensure they have adequate space and tools to facilitate affixing and activating of the stamps.
"The transition period of 1st April 2021 to 31st May 2021 has been granted during which every manufacturer, importer, distributor, agent or trader of sugar or cement shall be required to deplete all the unstamped goods," URA said in a statement.
"A taxpayer who fails to affix a tax stamp on goods is liable to pay a penal tax equivalent to double the tax due on goods or fifty million shillings, whichever is higher.”
The Authority has already engaged manufactures of sugar and cement ahead of the preparation for the implementation of the Digital Tax Stamps (DTS).
The Digital Tax Stamp is a mark or label applied to goods and their packaging and contains security features and codes to prevent counterfeiting of goods through its trace and track capabilities.
According to officials, each 50kg bag of cement will have a stamp bought at Shs135, Cement bulkers will pay Shs60,000 per truck while each bag of sugar will have a stamp worth Shs39.
DTS is a technology solution that was sought to aid tax administration while mitigating revenue losses and deterring existing deficiencies in the tracking and tracing of locally manufactured and imported products that had contributed to less than adequate tax receipts from the manufacturing sector as well as the importation of excisable products.