By KT Reporters
The Uganda Revenue Authority (URA) has introduced a fully online, web-based system for filing Local Excise Duty returns, replacing the semi-manual Excel-based system previously in use. This development follows the introduction of Digital Tax Stamps (DTS), which must now be affixed to all excisable goods, both locally manufactured and imported.
The new system simplifies the filing process by providing a pre-filled form, unlike the previous one, which required taxpayers to download Excel files, save them locally, enter data, enable macros, and then upload the completed forms. DTS technology enables real-time tracking of production and importation of excisable items, automatically populating data into URA’s systems and removing the need for repetitive data entry.
To access the new system, taxpayers simply log onto the URA website and follow the prompts. While training traders on the system, Garry Kizito, URA’s Assistant Commissioner for Compliance Management, explained that the authority aims to transform its processes to reduce compliance costs and encourage voluntary adherence.
“We are aware as URA that every time a client incurs a cost to comply, they may choose not to comply in order to make that saving. So, every time you reduce the cost of compliance, it drives taxpayers into voluntary compliance,” Kizito emphasized.
Kizito also reassured taxpayers about the security of URA’s online systems, highlighting that since the adoption of e-tax systems in 2009, there has been no record of cyber breaches. “Our e-tax systems have been around since 2009, so we are not introducing something new; we have simply made improvements to our existing system. We have never had any incident of hacking into our system. We have a fully-fledged IT security team that takes care of all cyber risks, and we consistently upgrade those systems,” he explained.
Fred Tumwesigye, a taxpayer and manufacturer of Desire beauty products, expressed gratitude for the new system, mentioning that it would save time and reduce errors. “There has always been a lot of errors that needed to be corrected under the old system, but now this has been rectified,” Tumwesigye said.
Tumwesigye also noted that the system would help taxpayers avoid unintentionally violating laws, particularly in labeling transactions with foreign customers as exports without proper documentation. “When a customer comes from outside Uganda, we have always called it an export, which is illegal, yet exports need to be designed and differentiated with particular documentation,” he added.
However, Tumwesigye urged URA to intensify sensitization campaigns to ensure taxpayers fully understand the system. “There is a need to raise awareness. Without it, the system may not serve its intended purpose,” he emphasized. The new web-based filing system is part of URA’s digital transformation journey to enhance taxpayer experience and promote efficiency in revenue collection-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
