The traders operating in Kampala downtown have maintained their position of striking against the alleged unfair taxation policy of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).
The traders have said that the EFRIS should remain operational among the manufacturers because most of the local traders are not cognizant of the policy.
In the Kampala city center, on Tuesday, April 16, 2024, some shopping malls and arcades, including Corner House, Equatorial Mall, and Ham Tower, among others, were closed until the traders’ pleas were addressed by the URA and Ministry of Trade.
Twaha Kayondo, the Domestic Tax Officer at the Uganda Revenue Authority (URA), said that it may be true that the authority did not reach everyone to explain how the EFRIS operates, but the authority has undertaken numerous steps to sensitize traders about the system.
“We might indeed not have reached everyone, but it is not true that we are sleeping. We have been online, on different TVs, and also set up mobile clinics to sensitize people about EFRIS,” Kayondo said.
Pamela Natamba, the partner and head of tax at PwC Uganda, said that EFRIS is just a victim of circumstances because there are other issues affecting traders.
“EFRIS is the tip of the iceberg. There is a lot that has been going on. Traders need to understand taxes and know that EFRIS is just a mechanism. Do they understand that?” she querried.
Issa Ssekito, the Spokesperson for KACITA, also said that there have been issues that have not been solved, and EFRIS is just a light on those issues.
He added that challenges such as taxing garments in kilograms and Chinese manufacturers opening up shops in town to compete with those of the locals are among the challenges faced by traders, but not mainly EFRIS.
“We also raised the issue of the Chinese, who are the manufacturers but bring goods to the town and also set up shops that compete with the traders,” Ssekito said.
Meanwhile, business owners in Hoima have urged the government to reconsider the new EFRIS system, citing its significant impact on their businesses.
However, Kayondo said that traders ought to know that EFRIS is not a tax, stating that they have been using it for a while and it benefits the traders and URA.
He revealed that the URA is willing to have a dialogue with the traders just as it has been, but some issues can’t be solved by the URA but rather by the Ministry of Trade.
