Henry Musasizi, Minister of State for Finance
Government has also moved to streamline the penalties governing Electronic Fiscal Receipting and Invoicing System (EFRIS) by dropping the Shs6M fine imposed on non-compliant taxpayers, and instead have the traders pay twice the amount of tax they owe.
The revelation was made by Henry Musasizi, Minister of State for Finance while appearing before Parliament’s Finance Committee to present the seven Tax Bills for FY 2025/2026.
The Minister explained reasons behind Government’s decision arguing, “Concerns have been raised regarding the high penalties of Shs6M per invoice, regardless of the value of the transaction, which disproportionately burden the taxpayers. To address this issue, we propose to amend the penalty structure so that the penalty for non-compliance will instead be twice the tax owed by the taxpayer.”
EFRIS is a mechanism for real-time monitoring of business transactions, aimed at enhancing transparency and efficiency in VAT collection and remittance.
Additionally, 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.
