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MPs urge manufacturers to comply with tax regulations

Bottles of wine with Digital Stamps

Entebbe, Uganda | THE INDEPENDENT |  Members of Parliament on the Finance Committee have called upon Ugandan manufacturers to adhere to the country’s taxation regime, particularly regarding Digital Tax Stamps (DTS).

The call came during a recent meeting with representatives from the Private Sector Foundation Uganda (PSFU), who raised concerns about the impact of DTS on the manufacturing sector.

Dr. Julius Byaruhanga, leader of the PSFU delegation, expressed concerns about the discriminatory application of DTS, which he argued has led to increased illicit trade in the country. He emphasized the need for equitable implementation of the system to ensure a level playing field for all manufacturers.

Allan Ssenyondwa, Director of Advocacy at the Uganda Manufacturers Association (UMA), echoed these sentiments, suggesting that the government should review the implementation of DTS to minimize its impact on the sector. He advocated for lower costs associated with the stamps to encourage greater investment in manufacturing.

Amos Kankunda, the chairperson of the Finance Committee, assured the manufacturers that their concerns would be addressed. He pledged to compile a comprehensive report and present it to Parliament to inform future policy decisions.

The introduction of DTS in 2019 was aimed at addressing revenue leakages and bolstering domestic revenue mobilization. However, some manufacturers have raised concerns about the associated costs and potential negative impacts on their businesses.

The Uganda Revenue Authority (URA) has maintained that DTS is a crucial tool for combating illicit trade and ensuring fair competition. The authority has also committed to working with manufacturers to address any challenges they may face.

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