Uganda’s revenue collection is rising steadily, and digital technology is playing a big role in this progress. The Uganda Revenue Authority (URA) has recorded a 40 percent increase in revenue collections over the past four years.
This growth is linked to improvements in tax administration, especially the use of modern digital systems. According to the Auditor General’s report for 2024/25, total government revenue increased from about sh22.098 trillion to sh32.357 trillion. This shows how reforms in tax systems are changing the way taxes are declared, tracked, and enforced.
One of the key tools behind this success is the Digital Tax Stamp (DTS) system. DTS was introduced to strengthen the excise duty system by placing secure digital stamps on excisable goods at production or import points. These stamps create a clear digital trail from the factory to the market.
With real-time monitoring, URA can now close loopholes that previously allowed untaxed goods to be sold. Over the review period, customs and excise revenues grew by 29 percent, supported by strong performance in value added tax (VAT) and income tax. This shows that digital enforcement is having a broad and positive impact.
Manufacturers are also seeing the benefits. Companies like Simba Cement Uganda have publicly supported the system, saying digital tax stamps make it easier to identify genuine products and ensure all taxes due are paid. This helps create fair competition in the market because businesses that follow the law are protected from unfair rivals who avoid taxes.
Government leaders have praised the use of digital tools. Speaking at the 2025 Uganda Economic Update, Deputy Secretary to the Treasury Patrick Ocailap said digital systems help the country raise more revenue without increasing tax rates. President Yoweri Museveni has also highlighted digital tax stamps and the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) as key tools in the fight against corruption and revenue loss. These systems reduce human interaction in tax processes, which helps limit fraud and improve transparency.
Although the Auditor General, Edward Akol, noted that the shift to digital systems had early challenges, the long-term benefits are now clear. Compliance has improved, and enforcement has become stronger. URA reports that the tax investigations department has increased targeted operations to stop illicit trade. In December 2025, officers seized more than 3,000 cartons of unstamped spirits, commonly known as waragi, valued at about sh50 million. Such actions show that digital intelligence is becoming more important than physical inspections.
Despite this progress, the Auditor General cautioned that Uganda’s tax base is still narrow and concentrated in a few sectors. However, improvements in tax administration provide a strong path toward better domestic revenue mobilisation. The government has set a target of sh37.2 trillion in revenue for the 2025/26 financial year, and digital systems are expected to play a central role in reaching this goal while protecting compliant businesses and consumers.
Overall, URA’s investment in digital tax stamps and other electronic systems is transforming revenue collection. These innovations are helping the government raise more money in a fair and efficient way, without putting extra tax burdens on citizens.
