In an insightful address during the Private Sector Foundation Uganda’s unveiling of a PwC report on Digital Tracking Solutions’ (DTS) impact in Uganda, John Musinguzi Rujoki, the Commissioner General of the Uganda Revenue Authority (URA), has firmly tackled the ongoing debate about the costs associated with DTS implementation. Rujoki reassured stakeholders that the financial burden on businesses is manageable and is significantly outweighed by the benefits, such as enhanced tax compliance and a reduction in illicit trade activities.
“The paramount challenge we face is not the expenses linked to the DTS system but ensuring comprehensive compliance across all business sectors,” Rujoki clarified. This statement directly addresses concerns raised by figures like Simon Kaheru from Coca-Cola Beverages, who have voiced apprehensions about the system imposing financial strains on manufacturers.
Since its launch in 2019, DTS has played a pivotal role in broadening Uganda’s tax base, evidenced by the increase in registered manufacturers and importers. The system’s effectiveness in combating tax evasion and fostering transparency in the supply chain is undeniable, despite ongoing resistance from certain sectors to fully embrace the system.
Highlighting the positive outcomes of DTS, the Commissioner General pointed to the tangible improvements in sectors with high compliance rates. Data from the URA further illustrates that DTS not only acts as a crucial regulatory mechanism but also encourages economic activity by ensuring fair competition among businesses.
In the discussion, Zackey KKalega, the acting Commissioner of Internal Trade at the Ministry of Trade, underscored the government’s commitment to curbing illicit trade through collaborative efforts with key industry players such as BAT and UBL.
Despite the significant strides made since the adoption of DTS, challenges such as non-compliance continue to impede its full potential. Agnes Ssali, Legal Director and Company Secretary for Uganda Breweries Limited, highlighted the detrimental impact of illicit trade in the alcohol sector, exacerbated by DTS underutilization, emphasizing the critical need for digitization to maximize the system’s benefits.
As Uganda forges ahead with modernizing its tax infrastructure, the emphasis remains on bolstering compliance across all sectors, including emerging markets like kombucha products. The collective goal is to harness the full spectrum of advantages offered by DTS, thereby contributing to the nation’s overarching economic objectives.
To stay ahead in navigating the complexities of regulatory changes and ensuring your business remains compliant, subscribe to Compliance Tracker. By subscribing to Compliance Tracker, you’ll gain first-hand access to the most current updates on new regulations and changes across Africa. Don’t let regulatory changes catch you off guard. Subscribe here to Compliance Tracker today and be the first to know, ensuring your business operations remain smooth and compliant.
Last modified: May 10, 2024
