Digital Tax Reforms Drive Growth in URA Collections

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Digital Tax Reforms Drive Growth in URA Collections
Digital Tax Reforms Drive Growth in URA Collections

Africa-Press – Uganda. Uganda’s revenue collections have grown by 40 percent, according to the 2024/25 Auditor General’s Report, with digital tax stamps playing a major role in improving compliance.

The report shows that total government revenue rose from Shs22.098 trillion to Shs32.357 trillion, a Shs10 trillion increase.

The Auditor General says the growth is largely due to reforms in tax administration, especially the use of digital tools to reduce leakages and improve enforcement.

One of the key systems behind this growth is the Digital Tax Stamp Solution (DTS). Under the system, excisable goods must carry tamper-proof digital stamps at production or import points, allowing authorities to track products as they move through the market. DTS is implemented by SICPA Uganda under the Uganda Revenue Authority (URA).

According to the report, real-time monitoring through DTS has helped close loopholes that allowed untaxed goods to reach consumers. As a result, customs and excise revenues increased by 29 percent, alongside better performance in VAT and income taxes.

The system has also helped reduce illicit trade. Manufacturers such as Simba Cement Uganda say digital stamps make it easier to identify genuine products and ensure taxes are paid, improving fairness in the market.

Government officials say digital systems are helping raise revenue without increasing taxes. Speaking at the 2025 Uganda Economic Update, the Permanent Secretary to the Treasury, Patrick Ocailap, said,

“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,” Ocailap said.

Robert Kalumba, Assistant commissioner public and corporate affairs at URA, explained the mechanics of DTS and its practical benefits: “DTS is Digital Tax Stamps. Used to monitor stock for gazetted manufactured and imported goods. To both the taxpayer and URA, it makes stock taking easier if the manufacturer or importer uses the system effectively.”

On whether DTS has shortcomngs, Mr Kalumba said it can come about if the system is not properly used.

“That is, if the taxpayer fails to properly stick the stamps on the products following the correct stamp series as given,” he added.

President Museveni has also backed the use of digital systems in tax administration. In his 2025 State of the Nation Address, he said tools such as DTS and EFRIS are important in fighting corruption and improving accuracy in tax collection.

“Digital Tax Stamps and EFRIS are key to ensuring accurate revenue declarations,” the President said.

However, the Auditor General cautions that Uganda’s tax base remains narrow, however the report notes that compliance has improved over time as the systems become more established.

As government targets Shs37.2 trillion in revenue in the 2025/26 financial year, digital systems like DTS are increasingly seen as important tools for protecting revenue and ensuring fairness in the market.

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