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The Uganda Revenue Authority (URA) has successfully collected an amount of sh6.8 billion in just one week following the enforcement of compliance with the Digital Tracking System (DTS) and the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) in the Kampala Central Business District (CBD).

Sandra Kaitare, the Assistant Commissioner of the Petroleum and Mining Division overseeing the operations, highlighted that the substantial sum primarily comprises penalties imposed on defaulters of both systems. The focus on EFRIS is aimed at encouraging VAT-registered taxpayers to issue invoices, ultimately intending to boost VAT revenue collections.

Furthermore, Kaitare emphasized that DTS enforcement ensures manufacturers and producers activate the stamp, as the goal is to guarantee all products in the market are properly stamped. The URA tax education team has been actively informing taxpayers about EFRIS and DTS since last year, emphasizing compliance benefits and the consequences of non-compliance, including significant fines.

Defying EFRIS incurs a sh6 million penalty for VAT taxpayers, charged monthly from businesses and individuals. Regarding DTS, failure to stamp products results in a sh50 million penalty for manufacturers, and products are seized until properly stamped. Kaitare clarified that the penalty for failing to stamp or activate DTS is sh50 million.

Possessors of unstamped products are also liable for a sh50 million fine, but Kaitare underscored that their sole responsibility is to ensure purchased products have a DTS stamp.

The overarching objective of this enforcement, as articulated by Kaitare, is to attain taxpayer compliance. Despite imposing penalties, the ultimate goal is to facilitate the normal flow of business. Kaitare expressed that increased compliance leads to smoother business operations and fewer penalties, making the project successful when fewer people face penalties.