KAMPALA, Uganda — Improvements in tax administration, specifically the adoption of digital tracking tools, have driven a 29% growth in customs and excise revenues, according to the 2024/25 Auditor General’s report.
The report highlights the Digital Tax Stamp Solution as a primary catalyst for this growth. By requiring tamper-proof stamps on excisable goods at the point of production or import, the Uganda Revenue Authority has successfully closed loopholes that previously allowed untaxed products to reach consumers.
This digital enforcement has transformed how the taxman operates. According to Agnes Nabwire, acting commissioner of the tax investigation department, the agency now relies more on digital intelligence than physical inspections. This shift was underscored in December 2025 when a targeted operation based on system data led to the seizure of more than 3,000 cartons of unstamped spirits.
The Auditor General, Edward Akol, noted that while the transition to these systems faced early implementation hurdles, the long-term gains in compliance have outweighed the disruptions. The system, implemented by SICPA Uganda, provides the government with real-time data on production and imports, making it nearly impossible for manufacturers to under-declare their volumes.
“The use of digital systems is great for our country and will help URA collect more revenue,” said Patrick Ocailap, deputy secretary to the treasury. He noted that the success in customs and excise collection is a key reason the government has been able to increase total revenue by 10 trillion shillings over four years without raising tax rates.
The audit report indicates that the number of taxpayers registered under the digital stamp system has grown to 1,680. As the government prepares for the 2025/26 financial year with a revenue target of 37.2 trillion shillings, digital tools are expected to remain the backbone of domestic revenue mobilization and the fight against illicit trade.
