THE government of Uganda looks forward for further roll-out on digital tax stamps to deter under-declaration of production at factories and imports and eventually boost revenue collections, according to the Minister for Finance Planning and Development, Mr Matia Kasaija.
Presenting the budget estimates for fiscal year 2020/2021 in the parliament, Mr Kasaija said the technology is also crucial for ensuring that goods in the market meet required health and safety standards.
“As such, the government through the Uganda Revenue Authority will ensure further roll out of digital tax stamps and expand the range of products covered in order to deter under-declaration of production and importation,” he explained.
The minister noted further that the digital tax stamps are crucial for enabling the government to achieve its target of collecting domestic revenues of UGX 21.810 trillion in the next financial year.
The targeted amount for the fiscal year comprises tax revenue amounting to UGX 20.219 trillion and non-tax revenue of UGX 1.591 trillion. “This target translates into a revenue of effort of 14.3 per cent of the Gross Domestic Product (GDP) .
To achieve this target, we will implement several measures to increase revenue collection including expanding the scope of the digital stamps,” he told parliamentarians during his speech.
The measure, according to Mr Kasaija aims at supporting enhanced economic recovery as well as maintaining an acceptable level of social welfare amid the COVID-19 pandemic which has been a thorn in a flesh for many economies globally.
In his budget speech, the minister explained that tax administration will be strengthened to improve efficiency in revenue collection.
The capacity of local government authorities, including roll-out of the digital collection of fees and rates will also be enhanced to improve revenue generation.
He mentioned other measures as roll out of Electronic Fiscal Devices, which are cash registers interconnected to the Uganda Revenue Authority, to improve record keeping and tax compliance
. In the same line, the Ugandan government plans to enhance rental income tax collection and compliance by implementing a digital collection solution as well as gazzete rental income tax in different geographical areas for taxpayers who do not voluntarily declare their rental income.
Through the budget with a theme, “Stimulating the Economy to safeguard Livelihoods, Jobs, Businesses and Industrial Recovery,” the government of Uganda plans to collect and spend UGX 37.792 trillion of which UGX 19.787 trillion will be channeled for recurrent expenditure while the remaining UGX 18.004 trillion will be allocated for development projects.