Uganda’s fiscal reform efforts are getting a significant boost from the digital tax stamps system, which is proving to be a cornerstone in enhancing revenue mobilization. The World Bank, in collaboration with Uganda’s Ministry of Finance and the Uganda Revenue Authority (URA), unveiled the 25th Uganda Economic Update on September 30, 2025, emphasizing the role of technology in improving Uganda’s tax collection and service delivery.
Speaking at the launch, Mr. Patrick Ocailap, Acting Permanent Secretary and Secretary to the Treasury, highlighted how digital systems like the digital tax stamps are integral to improving tax collection. “Digital systems are a great asset for Uganda, helping URA collect more revenue, especially through digital stamps on excisable goods found in supermarkets,” he said.
Digital Tax Stamps Explained
Introduced in 2019, the digital tax stamps are specifically designed to protect the supply chain of excisable goods like beer, spirits, wine, soda, cement, and tobacco. These stamps are applied to each product and can be traced and authenticated, allowing URA to easily verify tax compliance and combat illicit trade.
The system, implemented by SICPA Uganda, has already shown impressive results. As of mid-2023, over 1,100 manufacturers and 300 importers were using the platform, a significant increase from fewer than 200 participants in 2019. URA has reported a steady rise in compliance, with a 23% increase in manufacturer registration during the first half of 2023 alone.
Future Prospects
The World Bank’s economic update stresses that increasing tax collection alone is not enough to create the fiscal space Uganda needs. Efficient and transparent public spending is equally important. By focusing on both revenue mobilization and the efficiency of public spending, Uganda aims to achieve greater growth and improved service delivery. Projections suggest the economy could grow by over 6% in the current financial year with effective implementation of reforms.
As Uganda continues to roll out digital tax stamps, the system has become a key tool in enhancing domestic revenue mobilization, increasing tax compliance, and ensuring better public investment. The URA’s digital reforms are paving the way for a more robust and transparent economy, which is expected to improve Uganda’s growth trajectory and service delivery in key sectors such as health, education, and social protection.
