A section of dissatisfied traders has threatened to close their businesses again over what they perceive as the unfair implementation of the Electronic Fiscal Receipting and Invoicing system (EFRIS) by the Uganda Revenue Authority (URA). This decision comes after a much-anticipated meeting with President Museveni held at Kololo Independence Grounds, during which the traders had hoped to have their grievances addressed.
Among the concerns raised by the traders during the meeting were corruption allegations against URA officials and issues of over and double taxation. Specifically, Mr. John Kabanda, the chairperson of the Federation of Uganda Traders’ Association (FUTA), decried the high and unfavorable taxes imposed on them by URA.
In response to these concerns, President Museveni stated that he did not see any form of double taxation as claimed by the traders.
"You only pay once. And you don’t pay what the other one has already paid, and I protect our factories," he said.
The president also emphasized the government's deliberate policy on taxes, stating that they do not tax what "builds Uganda," and if they do, they impose a smaller tax. He encouraged the traders to embrace exporting locally manufactured products.
However, despite the meeting with the president, Mr. Kabanda expressed dissatisfaction with the outcomes, stating that they expected the president to call off the implementation of the controversial EFRIS.
"We are going to meet as traders and plan the way forward. We need a mindset change because the problem started some time ago, but we are trying to work on it, and we have worked on it because it is not as it used to be. But with time, I know we are going to improve," Kabanda said.
Additionally, Kabanda requested the president to hold annual meetings with them for constructive interactions regarding their businesses. In response, President Museveni promised to hold another meeting with the traders on June 20, 2024, to provide them with a concrete action plan.
The traders, however, have vowed to close their businesses again if their concerns, especially regarding the implementation of EFRIS, are not adequately addressed.
Museveni yesterday scrapped penalties imposed on traders for not enrolling on the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) but maintained that the government will continue collecting taxes despite their protestations.
He, however,ordered Uganda Revenue Authority (URA) to open shops it locked over the standoff, but said tax revenue is required to develop the country for current and future generations.
“I am 80-years-old and about to go to heaven. You are still young and have more years ahead. You will be the ones to suffer if we don’t plan and make this country better for you to live in,” Mr Museveni said in response to demands by traders that implementation of EFRIS be stayed.
