By Otai James
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 the Auditor General’s report of 2022, UNBS could not readily put in place regulations to enable it to collect the said tax.
“UNBS/UURA and a Supplier executed a framework contract for the supply, implementation, training, commissioning, support, and maintenance of a DTS Solution, dated October 4, 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 (specialized 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 fee 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 the Uganda National Bureau of Standards (UNBS) because of a lack of regulations.
As a result, UNBS has failed to claim the conformity stamp levy totaling UGX 19.754 billion,” the report further read.
“Failure to implement Digital Conformity Stamps not only affects UNBS revenue performance but also derails the government’s focus on ensuring compliance with Quality Standards aimed at reducing substandard items in the market.”
The Auditor General “advised the Accounting Officer to expedite the formulation of the Digital Conformity Stamps Regulations.”
The development comes against the backdrop of bribery allegations at the UNBS, with the ED, Livingstone Ebiru, and the chairperson, Charles Museruka, trading accusations of swindling cash.
Embattled UNBS head Livingstone Ebiru
Ebiru has since been sent on forced leave, with no acting ED named yet. The vacuum could result in more losses being made by the standards body.