Businesses have resumed operating in Uganda’s capital, Kampala, after traders protested on Monday, April 8, 2024, over the alleged unfair taxation policy of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), enforced by the Uganda Revenue Authority (URA).
According to some traders from the Federation of Uganda Traders Association (FUTA), Monday’s standoff was a warning to URA to reconsider the 18% tax on each commodity sold.
Meanwhile, shops housed in arcades such as Mini Price, Modern, Giant, Translink, Corner House, Kikuubo, Galiraya, Majestic Plaza, and Gazaland, among others, were seen open and operational.
Ibrahim Bbosa, the URA Spokesperson, said that the authority is concerned with issues affecting traders and is committed to holding frequent discussions to help them navigate such challenges.
“Many businesses are struggling with these taxes unnecessarily because we haven’t provided them with the support and guidance they require. We’re committed to assisting traders with regular discussions and helping them navigate the pain points of the law,” Bbosa said on Tuesday.
He added that the tension from the traders is understandable and expected, explaining that traders are grappling with technology adoption, which requires time and extensive collaboration.
“Mindset change is also a challenge because traders are accustomed to manual methods, especially with their books,” Bbosa added.
While appearing on one of the national television shows on Tuesday, April 9, 2024, John Kabanda, the President of FUTA, said that most of the traders are incognizant about the EFRIS, making it hard for them to handle the system. He revealed that around 70% of them are not well educated, and they are not sure of their businesses’ survival.
He, however, revealed that traders are expected to meet President Museveni before Friday, April 12, 2024, to discuss the issues affecting traders in Kampala.
“We have been informed that President Museveni will meet with the traders on Friday. I assure the traders that by Friday, issues will be resolved,” Kabanda said.
Thaddeus Musoke, the Chairperson of the Kampala Capital City Traders Association (KACITA), said that URA must revise the EFRIS system to reduce delays in receipts. He added that URA should halt operations, re-strategize, and involve traders.
