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Digital stamps have curbed illicit trade, says Simba Cement
There have been cases of seized cement, especially in eastern Uganda, allegedly smuggled into the country. Photo / File
What you need to know:
- Simba Cement says there has been a substantial decrease in the amount of cement smuggled into Uganda
Simba Cement manufacturers have said the introduction of digital tax stamps has been key in curbing the entry of substandard and illicit cement into the country.
Speaking at a press briefing in Kampala, Mr Heet Raval, the Simba Cement marketing manager, said the entry of counterfeit and substandard cement, especially through eastern Uganda, had significantly reduced, noting that the industry is now focused on offering high-quality cement instead of what is being smuggled in and who is counterfeiting existing products.
“There had been a lot of smuggling of cement at the Ugandan border previously, but now [digital tax solutions] are helping us to identify what is genuine and if the taxes are being paid,” he said.
Last month, police seized more than four tonnes of counterfeit cement at Akapa Trading Centre near Tororo Town in eastern Uganda with falsified digital tax stamps.
Counterfeiting, according to Uganda National Bureau of Standards remains a serious challenge, with at least 58 percent of goods on the market counterfeited, which presents significant risks to consumers and the entire economy.
In April 2019, Uganda Revenue Authority launched the digital tax stamps initiative to combat illicit trade and seal revenue leakages, which Ms Clare Musiime Bakanga, the URA head of change management for digital tracking solutions, said had presented many traders and businesses with unfair competition.
URA, she noted, was working with UNBS to minimize revenue leakages, combat illicit trade, and ensure traceability of products.
Digital tax stamps contain security features that prevent counterfeiting and also have track-and-trace capabilities that allow consumers to validate the stamps, traders and manufacturers to track product movement, while at the same time enables the government to monitor tax compliance.
Ms Bakanga also noted that the stamps have been key in enabling URA to keep a record of how much a particular manufacturer produces, thus helping proper assessment for onward taxing and have been built and enhanced with a quick response code that allows distributors, retailers, and consumers to verify the authenticity of products.
Ms Edina Agwata, the Simba Cement sales manager, whereas the matter of counterfeits is largely being dealt with, prices of construction materials, such as cement remain high, thus, making construction expensive.
“We have initiated price reduction in the market. We are committed to making cement affordable for every Ugandan,” she said.
There have been reports of a large buildup of a network that adulterates cement with low-cost fillers.
