Uganda has placed digital tax stamps at the centre of its fiscal reform strategy as government intensifies efforts to raise domestic revenue and strengthen tax compliance.
Launched in 2019, digital tax stamps are secure electronic labels attached to excisable products such as beverages, cement, spirits, and tobacco. They allow the Uganda Revenue Authority (URA) to monitor goods from the point of manufacture or import to the final sale. Officials believe this innovation is closing loopholes that have long enabled tax evasion, counterfeiting, and illicit trade.
The Ministry of Finance and URA have highlighted digital stamps as a cornerstone in the new financial year’s reform agenda, aligning with Uganda’s ambitious revenue target of over UGX 36 trillion. By embedding technology into the tax system, authorities aim to track production volumes more accurately, broaden the tax base, and ensure fairness among manufacturers.
Evidence so far suggests the system is bearing fruit. Since its introduction, compliance among manufacturers has steadily risen, with more local producers and importers now registered on the platform. Excise duty collections have also improved, while under-declaration of taxable goods has been curtailed. For compliant businesses, this has created a more level playing field by reducing unfair competition from illicit traders.
Yet challenges remain. Smaller businesses continue to raise concerns about the cost of compliance and the complexity of adopting digital systems. There are also ongoing calls to strengthen integration between digital tax stamps and other electronic platforms such as the Electronic Fiscal Receipting and Invoicing System (EFRIS) to improve efficiency and reduce duplication.
Despite these hurdles, government is confident that digital tax stamps will remain a vital lever in Uganda’s long-term fiscal reform. Beyond revenue mobilisation, the system is also seen as a tool for boosting consumer protection by ensuring the quality and authenticity of products on the market.
As fiscal pressures mount and external funding tighten, Uganda’s future revenue growth is likely to depend less on raising new taxes and more on deploying smart, technology-driven solutions. Digital tax stamps, now firmly at the heart of fiscal reform, illustrate this shift towards innovation, accountability, and fairness in the country’s tax system.