Uganda Breweries urges government to enforce compliance with digital tax stamps system 

UGANDA – Uganda Breweries Limited (UBL) has called on the government to intensify efforts to ensure that all manufacturers comply with the Digital Tax Stamps (DTS) system, a measure introduced to curb revenue leakages and promote fair competition in the market. 

Speaking during a media briefing in Kampala, UBL Managing Director Andrew Kilonzo emphasized the need for stricter enforcement of the DTS system, which was launched during the 2019/20 Financial Year as part of the Finance Ministry’s Domestic Revenue Mobilization Strategy.  

Kilonzo pointed out that, despite the introduction of DTS, some products in the market continue to be sold without tax stamps, creating an uneven playing field. 

“In some outlets, you will see our products like Uganda Waragi bearing tax stamps, being sold next to items that do not have [the stamps],” Kilonzo stated, underscoring the importance of comprehensive compliance among all industry players. 

DTS has been successfully implemented across East Africa, with Kenya pioneering the system in 2013, followed by Tanzania and Rwanda in 2019.  

However, Kilonzo acknowledged that achieving full compliance in Uganda remains a challenge. He urged the government to explore strategies to increase participation, including potentially reducing the costs associated with the system. 

“Maybe we need a different approach, to get more players and drive up volumes,” Kilonzo suggested, emphasizing the need for collaboration between the government and manufacturers to enhance compliance. 

Uganda Revenue Authority (URA) Commissioner General John Musinguzi Rujooki praised the effectiveness of digital tracking solutions in reducing the presence of illicit products in the market and promoting fair trade.  

He urged manufacturers to embrace the DTS system, which plays a crucial role in eliminating counterfeit goods. 

Rujooki also highlighted that there are provisions for a progressive reduction in the cost of the tax stamps as compliance improves.  

“Every time we hit the milestone, we are in a position to negotiate,” he noted, adding that URA has already achieved price reductions for stamps used on spirits, beers, and kombucha. 

Despite the efforts to implement DTS, reports indicate that compliance remains a significant challenge.  

A report by Euromonitor last year revealed that only 35.5 percent of alcohol in Uganda was legal, with the remaining 64.5 percent classified as illicit.

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