Uganda Breweries urges authorities to implement compliance with digital tax stamps system  | Meals Enterprise Africa

UGANDA – Uganda Breweries Restricted (UBL) has known as on the federal government to accentuate efforts to make sure that all producers adjust to the Digital Tax Stamps (DTS) system, a measure launched to curb income leakages and promote honest competitors available in the market. 

Talking throughout a media briefing in Kampala, UBL Managing Director Andrew Kilonzo emphasised the necessity for stricter enforcement of the DTS system, which was launched in the course of the 2019/20 Monetary 12 months as a part of the Finance Ministry’s Home Income Mobilization Technique.  

Kilonzo identified that, regardless of the introduction of DTS, some merchandise available in the market proceed to be bought with out tax stamps, creating an uneven enjoying area. 

“In some retailers, you will notice our merchandise like Uganda Waragi bearing tax stamps, being bought subsequent to objects that should not have [the stamps],” Kilonzo said, underscoring the significance of complete compliance amongst all business gamers. 

DTS has been efficiently applied throughout East Africa, with Kenya pioneering the system in 2013, adopted by Tanzania and Rwanda in 2019.  

Nonetheless, Kilonzo acknowledged that reaching full compliance in Uganda stays a problem. He urged the federal government to discover methods to extend participation, together with doubtlessly lowering the prices related to the system. 

“Possibly we want a special method, to get extra gamers and drive up volumes,” Kilonzo steered, emphasizing the necessity for collaboration between the federal government and producers to reinforce compliance. 

Uganda Income Authority (URA) Commissioner Common John Musinguzi Rujooki praised the effectiveness of digital monitoring options in lowering the presence of illicit merchandise available in the market and selling honest commerce.  

He urged producers to embrace the DTS system, which performs a vital position in eliminating counterfeit items. 

Rujooki additionally highlighted that there are provisions for a progressive discount in the price of the tax stamps as compliance improves.  

“Each time we hit the milestone, we’re ready to barter,” he famous, including that URA has already achieved worth reductions for stamps used on spirits, beers, and kombucha. 

Regardless of the efforts to implement DTS, stories point out that compliance stays a big problem.  

A report by Euromonitor final 12 months revealed that solely 35.5 p.c of alcohol in Uganda was authorized, with the remaining 64.5 p.c categorised as illicit.