KAMPALA: The Uganda National Bureau of Standards (UNBS) is back in the spotlight for making a sh19b loss in digital stamp tax collections.
According to Auditor General’s report of 2022, UNBS could not readily put in place regulations to enable it collect the said tax.
“UNBS / URA and a Supplier executed a framework contract for the supply, implementation, training, commissioning, support and maintenance of a DTS Solution, dated 4th October 2018, for a period of five (5) years, effective from the Go-Live Date at the unit prices specified in the Contract,” the AG report states.
“The DTS solution involves affixing digital stamps (specialised paper stamps or digital imprints) on all excisable gazetted products as and when they are manufactured or imported with information being transferred to URA in near real-time. The solution enables the tracking and tracing of the product throughout the supply chain,” the report further reads.
Although the digital stamp fees are collected by URA, they are submitted to the supplier and the fees structure varies from commodity to commodity but includes UGX.3 for UNBS conformity stamps.
“I reviewed the contract and noted that there was delayed implementation of the conformity stamps by Uganda National Bureau of Standards (UNBS) because of lack of the regulations.
As a result, UNBS has failed to claim the conformity stamp levy totalling UGX.19.754Bn,” the report further read.
“Failure to implement Digital Conformity Stamps not only affects UNBS revenue performance but also derails the Governments focus on ensuring compliance to Quality Standards aimed at reducing substandard items in the market.”
The Auditor General “advised the Accounting Officer to expedite formulation of the Digital Conformity Stamps Regulations.”
The development comes at the backdrop of bribery allegations at the UNBS with the ED Livingstone Ebiru and the chairperson Charles Museruka trading accusations of swindling cash.
Ebiru has since been sent on forced leave, with no acting ED named yet. The vacuum could result into more losses being made by the standards body.
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