COVID-19 AND DIGITAL TAX STAMPS: You do not have to kill the golden goose that lays the eggs to collect tax- PwC tax expert On the 13th of July 2020, the Minister of Finance, Planning and Economic Development, Hon. Matia Kasaija wrote to the Uganda Revenue Authority (URA) Commissioner-General, turning down and earlier government promise to meet for the costs of Digital Tax Stamps (DTS) for at least a year. According to the manufacturers of beverages, the majority of whom are affected by the decision, the government promise should have ended in January 2021, given that effective implementation of DTS started on 1st February 2020. But according to the Ministry spokesperson, Jim Mugunga, government meant calendar year 2019. Left with no option, the manufacturers, under their two umbrella associations, the Alcohol Manufacturers Association of Uganda and the Uganda Water and Juice Manufacturers Association have now petitioned the President, to halt the implementation of the Ministry of Finance directives to allow manufacturers and consequently their supply and logistics chain, consisting of farmers, retailers, distributors, and the public to first recover from the ravages of Covid-19. In this interview, CEO East Africa, sought the expert views of Juliet Najjinda, the Indirect Taxes Manager at PricewaterhouseCoopers on this latest controversy, and how best this issue can be resolved to create a mutual win.
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Juliet Najjinda, the Indirect Taxes Manager at PricewaterhouseCoopers says asking beverage companies to meet the cost of Digital Tax Stamps whilst Covid-19 is still wreaking havoc to the sector and most bars closed, will cripple the industry. She proposes a number of win-win solutions.