Uganda Revenue Authority has collected Shs6.8 billion within one week of enforcing compliance with the Digital Tracking System (DTS) and the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) in the Kampala Central Business District (CBD).
Since last year, the URA tax education team has been sensitising taxpayers about EFRIS and DTS, the benefits of compliance, and the impending consequences of non-compliance. All those that fail to comply with the systems are subject to hefty fines.
Sandra Kaitare, the Assistant Commissioner of the Petroleum and Mining Division, who is overseeing these operations, made this revelation, noting that the staggering sum accounts for penalties levied on defaulters of both systems.
“We are focusing on EFRIS because we want taxpayers who are registered for VAT to issue invoices in the hope that ultimately, we will be able to increase revenue collections for VAT,” she explained.
“The DTS enforcement also aims to ensure that every manufacturer and producer actually stamps and activates the stamp. If the stamps are not activated, it is as good as not putting them there in the first place, yet our goal is to make sure that all products on the market are properly stamped,” Kaitare added.
“VAT taxpayers that defy EFRIS have to pay Shs6 million, which can be charged once a month from businesses and individuals. For DTS, if the products are not stamped, the manufacturer is penalised, and the products are seized until they are properly stamped,” said Kaitare.
“The penalty for either failing to stamp or activate the DTS is Shs50 million. Unlike the lack of an invoice, which attracts punishment once a month, failure to stamp products attracts a fine every time we meet unstamped products all over the streets, even though they all belong to a specific company,” continued Kaitare.
The possessor of the products that have no stamp is also liable to pay a fine of Shs50 million. However, the seasoned tax expert emphasized that the only obligation of the possessor of the products is to ensure that the products they buy have a DTS stamp.
Kaitare further clarified that the goal of this exercise is to achieve taxpayer compliance.
“Whereas we are penalising, the ultimate goal of this enforcement is to ensure the normal flow of business and not to penalise anyone. The more people comply, the more normal flow we receive and the fewer penalties. The success of this project is finding fewer people to penalise,” she stated.