President Yoweri Kaguta Museveni is currently, this afternoon meeting with city traders to address their concerns regarding taxation, particularly focusing on the implementation of the Electronic Fiscal Receipting and Invoicing Solution (Efris) and Value Added Tax (VAT) issues. The meeting, taking place at Kololo Ceremonial Grounds, comes after a month-long protest by traders over various taxation issues.
Senior Press Secretary to the President, Mr. Sandor Walusimbi, confirmed the meeting, stating, “The President will meet the traders tomorrow [Tuesday] on issues of taxation and other issues at Kololo.”
Traders raised several concerns, including the complexity of Efris and the need for workers with IT and accounting skills to operate it. They argue that this requirement is impractical for the majority of wholesale traders, many of whom have minimal formal education. Additionally, traders have protested against the penalties imposed on defaulters of Efris, with the law stipulating a penalty of Shs6 million for tax evasion through Efris manipulation.
Last month, traders went on strike, demanding action on various issues, including high taxes on imported garments, bank agency notices issued by the Uganda Revenue Authority (URA) on traders’ accounts, and alleged corruption among tax enforcement personnel.
In response to the protests, President Yoweri Museveni halted the penalization of Efris defaulters while consulting with various ministries on the traders' concerns.
Traders' leaders, including Mr. Moses Lwegaba, the president of the Federation of Uganda Traders Associations, anticipate a significant turnout at the meeting.
"We expect more than 10,000 traders to attend the meeting. We are mobilizing them to go to Kololo and listen to the president’s decision," said Lwegaba.
Commenting on the potential outcomes of the meeting, tax consultant Mr. Samuel Asiimwe expressed concerns about the impact of maintaining Efris and VAT at current levels.
"If he maintains Efris and VAT at all levels, the prices of products will increase and it will affect the common person in the villages," Asiimwe said.
Traders have also raised issues regarding the violation of the Competition Act, 2023, claiming that since the enforcement of Efris, local manufacturers have been distributing their products directly to retailers in the countryside, bypassing wholesale traders.
EFRIS in full is Electronic Fiscal Receipting and Invoicing Solution. EFRIS entails the use of Electronic Fiscal Devices (EFDs), e-Invoicing, or direct communication with business transaction systems to manage the issuance of e-receipts and e-invoices in accordance with the Tax Procedures Code Act 2014.
With today’s meeting, the big question that remains is, will traders issues find a lasting solution following the Presidents address!
