Ashish Monpara, Chairman and Founder of the Modern Group of Industries, is reportedly on the run after Uganda Revenue Authority (URA) seized consignments of sugar from his Kaliro Sugar Company for lacking activated Digital Tax Stamps (DTS). The seizures, carried out on Thursday, January 29, 2026, took place in Soroti and Masaka.
Sources reveal that URA officials stormed the company in search of Monpara, who has since gone missing. He is now the subject of investigations into alleged forgery and nonactivation of digital tax stamps—a serious violation that could attract fines of up to UGX 30 million, up to 10 years in prison, and potential blacklisting of his business.
URA Commissioner for Tax Investigations, Jimmy Ekemu, confirmed that two stores containing the impounded sugar have been sealed following intelligence-led raids.
Digital Tax Stamps are tamper-proof labels used to track products from production to sale, preventing counterfeit goods from infiltrating the market. They are currently mandatory on items including sugar, beer, soft drinks, bottled water, cement, cooking oil, tobacco, wine, and spirits.
In Soroti, URA seized 1,300 bags of Kaliro Sugar from two warehouses after Gizmo machines revealed the stamps were not activated. Similarly, in Masaka, 70 bags were confiscated from a major retail outlet. Both cases have been referred to the DTS enforcement office in Mbale for further investigation.
Agnes Nabwire Asobola, URA Commissioner, said: “These operations are intelligence-driven and aim to restore fairness in the market. All manufacturers, importers, distributors, and retailers must comply fully with DTS and the Electronic Fiscal Receipting and Invoicing System (EFRIS).”
The DTS system, rolled out on November 1, 2019, requires manufacturers and importers of excisable products to affix digitally traceable tax stamps, as mandated under sections 19A and 19B of the Tax Procedures Code Act (TPCA) 2014.
DTS: A Game Changer for Uganda’s Revenue
URA credits digital enforcement, including DTS, with a 40% revenue increase over the past four years. According to the 2024/25 Auditor General’s report, government revenue jumped from UGX 22.098 trillion to UGX 32.357 trillion, largely due to digital tracking and improved compliance.
The DTS system, implemented by SICPA Uganda, creates a traceable digital trail from factory to market. It has helped close loopholes that previously allowed untaxed goods to circulate. Customs and excise revenues alone grew by 29%, with VAT and income tax collections also rising.
Beyond revenue, DTS has reshaped market behavior. Simba Cement Uganda has publicly endorsed the system, stating that digital stamps help identify genuine products and ensure fair competition.
Government officials, including Patrick Ocailap, Acting Permanent Secretary and Secretary to the Treasury, and President Yoweri Museveni, have emphasized DTS and EFRIS as central to anti-corruption and revenue mobilization strategies. Museveni stressed that digital systems reduce human error and ensure accurate tax reporting.
Since its rollout, DTS compliance has grown, with 1,680 registered taxpayers. The system now covers alcoholic beverages, soft drinks, sugar, cement, cooking oil, tobacco, and bottled water, bringing previously opaque sectors into the light.
URA’s crackdown on Kaliro Sugar signals a renewed commitment to enforcing tax laws and protecting the integrity of the market—showing that even high-profile industrialists are not above scrutiny.
