Evaluating the Effectiveness of Digital Excise Tax Stamp Systems in Strengthening Excise Tax Compliance and Supporting Policy Enforcement: A Comparative Secondary Research Study

Author (s)

Richard Wemesa, Christopher Wagima, Joshua Mwesigye, & Alex Madolo

Abstract

Governments worldwide are increasingly adopting digital technologies to enhance tax administration, improve compliance, and combat illicit trade. Illicit trade significantly undermines global excise tax revenues and policy enforcement. While digital excise tax stamp systems are increasingly adopted to combat this issue, cross-country evidence on their effectiveness remains fragmented. This study assesses how these digital systems improve tax compliance and support enforcement through a comparative secondary research methodology. Analyzing secondary data from Kenya, Turkey, Brazil, Georgia, and the European Union via thematic comparative analysis, the findings reveal that digital stamps materially enhance compliance by increasing supply chain visibility and strengthening oversight. Track-and-trace functionality emerged as the most consequential element for deterring illicit trade. However, effectiveness varies substantially by context; Turkey and the EU achieved superior outcomes through robust regulatory integration and stakeholder engagement, while Georgia’s progress was moderated by institutional limitations. The study concludes that digital excise tax stamps are effective tools when embedded within comprehensive governance frameworks. Technological advances alone are insufficient, requiring coordinated regulation, analytical capacity, and sustained institutional investment to maximize compliance and enforcement gains.

Key words: Digital Excise Tax Stamps, Excise Tax Compliance, Policy Enforcement, Track-and-Trace Systems, Tax Administration, Illicit Trade, Digital Governance.

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Cite This Article:

Wemesa, R., Wagima, C., Mwesigye, J., & Madolo, A. (2026). Evaluating the effectiveness of digital excise tax stamp systems in strengthening excise tax compliance and supporting policy enforcement: A comparative secondary research study, Journal of Scientific Reports, 14(1), 483-507. DOI: https://doi.org/10.58970/JSR.1227

About Author (s)

Richard Wemesa, Department of Management Sciences, King Ceasor University, Kampala, Uganda, Plot 32, King Ceasor Road,  Ggaba  Road, Kampala Uganda; Department of Applied Business Administration, Cornerstone University Uganda, Plot 2312 and 67 Bweyogere ,  Kazinga , Kira, Wakiso, Uganda; Department of research & Consultancy, The Uganda institute of banking and financial services, Kampala Uganda, Plot 10 Buganda Road,  P. O.Box  4986, Kampala Uganda; Department of Business Administration, Unicaf University, Plot 53B, Ntinda II Road/Nakawa Division, Kampala Uganda. ORCID: https://orcid.org/0009-0004-3425-4268

Christopher Wagima, Department of Management Sciences, King Ceasor University, Kampala, Uganda, Plot 32, King Ceasor Road, Ggaba Road, Kampala Uganda.ORCID:https://orcid.org/0009-0001-9206-5922

Joshua Mwesigye, Department of Computing and technology, Faculty of Engineering, Design and technology, Uganda Christian University, Wakiso, Uganda. ORCID:https://orcid.org/0000-0002-2815-0516

Alex Madolo, Department of Management Sciences, King Ceasor University, Kampala, Uganda, Plot 32, King Ceasor Road, Ggaba Road, Kampala Uganda.

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DOI: https://doi.org/10.58970/JSR.1227

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