Ministry of Finance has underscored the importance of digitisation the tax system for enhanced compliance.
Speaking at the 25th Uganda Economic Update 2025, acting secretary to the Treasury Patrick Ocailap, said digital systems, such as digital tax stamps, have been impactful tools in taxing everyday products and widening the tax base.
‘The use of digital systems is great for our country and will help URA collect more revenue, such as digital stamps on everyday products that we find in the supermarkets,’ he said.
The World Bank, in partnership with the Ministry of Finance and Uganda Revenue Authority (URA), yesterday launched the 25th Uganda Economic Update under the theme ‘Increasing Uganda’s Fiscal Space through Improved Revenue Mobilisation and Enhanced Efficiency of Spending and Service Delivery.’
The report highlights how technology and stronger governance could help Uganda close its revenue gap and improve service delivery.
Mr Ocailap underscored the role of digital stamps that have been visible in enhancing tax compliance under the excise duty regime.
Introduced in 2019, digital tax stamps are designed to protect the supply chain of excisable goods such as beer, spirits, wine, soft drinks, bottled water, cement, and tobacco.
Each product is affixed with a unique stamp that can be traced and authenticated, enabling URA to verify tax compliance and curb illicit trade.
The system is implemented by SICPA Uganda under the aegis of URA and the Ministry of Finance. Manufacturers and importers are required to use stamps as their goods move from production or importation into the market.
By mid-2023, URA reported that more than 1,100 manufacturers and over 300 importers had enrolled on the platform, up from just 200 in 2019.
Ms Francisca Ayodeji, the World Bank country manager, said Uganda’s expanding tax base and improving compliance are critical to creating the fiscal space needed to invest in health, education, and social protection.
‘By working together, we can ensure that reforms in revenue mobilisation … translate into tangible improvements in service delivery,’ she said.
The latest Economic Update emphasises that revenue mobilisation must be paired with efficient and transparent public spending, noting that collecting more taxes alone will not create the fiscal space Uganda requires unless funds are directed to priority areas.