Digital tax stamps (DTS), which are digital markings placed on products with the aim of increasing tax compliance on excisable products, were introduced in Uganda in October 2019. The markings are now mandatory on spirits, tobacco, beer, water, sodas and wines. 

Our member industries have complied with the law and affixed these digital stamps to their products, but have also expressed grave concern to Government about the cost of these stamps, which are on average UGX15 billion per manufacturer per year, which are paid out of our country to a Swiss company. 

Our member industries were appreciative that the Government had recognised the severe impact that imposing these costs on industry would have and as a result agreed that Government would bear the cost of DTS. 

However, despite Government’s previous assurances, we have now been informed that manufacturers will start bearing the cost of DTS, effective 1 July 2020.

This UGX15 billion per manufacturer per year cost will radically increase the costs of Ugandan manufacturers, with far reaching consequences for all parts of their Ugandan value chains, including Farmers, Retailers, Distributors, Government and Consumers.

All our efforts to obtain reassurance from the Government that it will cover the DTS costs beyond 30 June 2020, have so far proved futile.

We have been left with no other alternative but to REQUEST YOUR HELP.  IF INDUSTRY HAS TO PAY FOR TAX STAMPS, THE LIVELIHOODS OF OVER 50,000 FARMERS, 88,000 RETAILERS, MANY DISTRIBUTORS AND THE PUBLIC WILL ALL BE DRASTICALLY AFFECTED. 

The situation is even more pressing as a result of the Covid-19 pandemic, which has severely impacted the operations and extensive supply chains of the very industries that will be affected by the imposition of DTS costs. 

We appreciate and commend the leadership of H.E. President Yoweri Museveni in mobilizing Ugandans to stay safe from Covid-19, which has ensured no deaths in the country so far.

The President has rightly identified manufacturing as one of the elements of the critical economy and has taken the necessary steps to protect it from unnecessary Covid-19 impact.

WE NEED YOUR SUPPORT IN SIGNING OUR PETITION to H.E. the President to ensure Government continues to meet the costs of DTS, allowing manufacturers, FARMERS, RETAILERS, DISTRIBUTORS AND THE PUBLIC to survive the ravages of Covid-19.

WE NEED TO ACT FAST AND WE CAN’T DO THIS WITHOUT YOUR HELP