SICPA, a Swiss company providing Digital Stamp Solutions (DTS) in both Uganda and Kenya has won a court case in which a Kenyan senator accused it of earning a tender illegally with the Kenya Regulation Authority (KRA).

SICPA, a major provider of the DTS in Africa which entails affixing paper stamps on taxable products to increase revenue through tax compliance was dragged to court together with KRA after a Kenyan Senator Okiya Omtatah (Busia) claimed that it was given a tender in Kenya without following proper procurement regulations.

However, the Kenyan Appelant Court quashed the case citing that KRA did not violate any laws while tendering SICPA.

"It is our considered view that KRA acted lawfully in awarding the contract to SICPA Securities Ltd. The High Court made a mistake by finding that other companies were locked out of the tender and that there was no public participation in awarding the contract," the court ruled.

KRA had defended the SICPA digital tax system, noting that it was brought to ensure the traceability of products, secure excise duty, and ultimately increase revenue to the government.

SICPA, also contracted in 2019 by Uganda Revenue Authority marked a turning point in excise tax collection in Uganda.

The 2022/23 fiscal year alone witnessed an impressive surge of Shs157.9b in these collections, translating to a growth of 24.2%.

Supporting this, a report by the World Health Organisation accentuates the instrumental role of digital tax stamps in curbing revenue losses and ensuring product traceability. The study states, "Digital tax stamps are a potent weapon against tax evasion. They contain crucial details - from brand specifics to the manufacturer's data, ensuring end-to-end product traceability."