Traders in Kikuubo, a business hub in Kampala city
President Yoweri Museveni on Friday met the leaders of traders from Kampala and other districts at State House, Entebbe. The meeting centred around tax matters including the implementation of the Electronic Fiscal Reporting and Invoicing Solution (EFRIS) by Uganda Revenue Authority.
However, various inaccurate narratives have been said about yesterday’s meeting at State House, Entebbe.
Key issues raised by the traders included; the tax on textiles calculated based on kilograms is high; manufacturers who engage in wholesale and retail leave no room for traders to do business, resulting in unfair trade; the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) which they claim is not suitable for most of them and when they don’t use it they are penalized; the threshold for Value Added Tax (VAT), which is currently an annual turnover of Shs 150m, should be increased.
Sources reveal that the President listened attentively to the traders’ complaints and promised to study them further.
He indicated that he would consult with the Government’s tax experts on April 24th before giving guidance on the way forward.
He also expressed his desire to avoid making wrong decisions because he was rushed by the traders.
The President promised to communicate the government’s position on the matters presented in a meeting with all the traders on May 7th, 2024, at Kololo.
He encouraged the traders to open their shops and assured them they would not be penalised for not using EFRIS until the meeting on May 7th guides them on the way forward.
The President also made it clear that he would not tolerate any form of non-compliance with tax.
“It is good they have agreed to open up their businesses as we continue to find solutions to the issues raised,” Museveni said.
The President also said traders should answer the question:
Do we want to build our country Uganda or other countries by trading in goods produced by them?
“Must we continue to cause a hemorrhage of the little that we have made through agriculture and other sectors by sending our money outside? Uganda should not be a supermarket for other countries,” Musebeni added.
It is important to note that EFRIS is not an additional tax but a mechanism for real-time monitoring of business transactions, aimed to enhance transparency and efficiency in VAT collection and remittance.
According to URA, EFRIS benefits both the Government and the traders.
“EFRIS enhances record-keeping, streamlines tax filing and refunds, promotes fair taxation, and reduces revenue leakages, thereby contributing to a more robust tax ecosystem that serves the greater good of society,” URA said in a statement.
