The Uganda Revenue Authority has kick-started the use of a science laboratory to assess imported goods as a quick determinant of their value before levying Tax.
Agnes Nabwire, the Assistant Commissioner of Tax Investigations while on a mini-tour told journalists that “previously customs points were applying tax based on classification of products by observation.”
With the new initiative, she said, they (URA) are now able to ascertain the value of the products through laboratory testing thus a boost to the county’s tax base.
“Different compositions have different values to pay tax commensurate to the value. URA has been losing revenue, with science we have recovered billions of shillings. For textiles; cotton material pays more tax than polyester” she said.
Stephen Kiggundu, The Acting Manager of Science Investigations, said continued science application will not only widen the tax base but also improve the authority’s digital growth more effectively.
“The various science models applied in revenue mobilization include Digital Forensics to obtain information in digital formats with the record, Geospatial Information System (GIS) data to support the domestic tax, Laboratory service analysis, among others.”
“These initiatives will minimize smuggling of goods, under declaration, and abuse of export promotion schemes among others.”
Some of the products for science include among others; Textiles, Tiles, Shoes, Chemicals, and Artificial hair.
Among the authority’s new applications is also the use of science to trap non-compliant National manufacturers.
Denis Kugonza Kateeba, the Commissioner Tax Investigation Department, said that the initiative is also already yielding results nationally.
“Science application ascertains the appropriate cost of materials to make product valuation in order to establish and determine the cost against which e tax is levied,” he said.
