Uganda Revenue Authority (URA) on Wednesday confiscated over 2000 unstamped products from Bee De Eff (BDF) Spirits Limited, the maker of gins like ports gin, Spark Waragi, and Captain Cherry.
The Authority says the company had been distributing these products in the night.
They are also “potentially harmful to consumers’ health”, according to URA. According to Ian M. Rumanyika, the URA Ag. Assistant Commissioner Public and Corporate Affairs, some companies resorted to forging digital stamps from printing facilities.
However, he went on, “these will be countered by the stamp verifier technologies.”
By March 2021, URA had recovered over Shs3.5 billion in revenue as a result of netting 33 Digital Tracking Solution (DTS) flouters who were caught manufacturing, selling, exporting or distributing gazetted goods without the tax stamps.
DTS was operationalized in November 2019 and it covers six products: beer, soda, water, wines, spirits, and cigarettes. URA says some manufacturers and importers are gaming the system by sending out products using unbranded vehicles.
Section 19 of the Tax Procedure Code (TPC) stipulates that a penalty of Shs50 million or 50% of the value of unstamped goods whichever is higher, is served for failure to affix a digital stamp on select gazetted products.
When the taxman’s law enforcement team finds unstamped products at the manufacturer’s premises, it seals off the premises and penalizes owners as stipulated in the law with the task to stamp products going forward.
The DTS, according to URA, is helping to wipe out illicit trading while leveling the unfair business playfield in favor of the compliant taxpayers.
The digital tax stamp is a mark affixed to uniquely track and trace gazetted products on the market.