The Uganda Revenue Authority (URA) recently intercepted six trucks carrying a total of 1,900 bags of smuggled Simba cement in the areas of Lwakhakha and Suam River over the past few weeks.
Out of these, 1,500 bags had no digital tax stamps and hadn’t fulfilled the necessary customs obligations for cement importation, classifying them as smuggled goods. The remaining 400 bags had digital tax stamps but were still smuggled through porous border points.
The trucks involved had various registration numbers and were each transporting unstamped cement bags, with some carrying more than the allowed quantity. It was revealed that these trucks obtained a single import document for one truck of cement but used it to smuggle multiple trucks without fulfilling their customs tax requirements.
Failure to use tax stamps can result in hefty penalties, and customs regulations require cement importers to pay VAT, withholding tax, and infrastructure levy, all of which were missing in the confiscated cement.
Cement is one of 26 products and services subject to excise duty, a tax imposed to generate revenue and regulate consumption of specific goods. Cement pays a UGX 500 excise duty per 50kg bag through digital tax stamps. These stamps were introduced in 2019 to facilitate the declaration and payment of excise duty.
In addition to cement, other products such as beer, soda, bottled water, alcoholic beverages, and tobacco products are also required to use digital tax stamps to combat illicit trade and ensure compliance with tax obligations.
These stamps also enable tracking and tracing of goods in the supply chain to maintain product standards and protect consumers’ health.