Dr. Ezra Muhumuza, the Executive Director of the Uganda Manufacturers Association (UMA), has accused the Uganda Revenue Authority (URA) of using the current penalties as a way, essentially to extort traders through the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) system.

Muhumuza, while speaking on one of the local televisions on April 22, 2024, said that the UGX 6 million asked to be paid to URA by defaulters is way too much for the traders.

“URA presents a forum, people keep appealing, and nothing is done. Currently, they are using penalties as a solution, essentially extorting traders through EFRIS. Asking defaulters to pay UGX 6 million is way too much,” Muhumuza said.

He said that he does not agree with traders’ impulses with URA about EFRIS, noting that it’s the mandate of URA to collect taxes.

Muhumuza noted that Uganda has a significant marketing problem that is beyond URA, rendering the meeting between the traders and the President of Uganda unnecessary.

“If the system isn’t aligned, traders will continue to suffer. The president agrees to meet traders only because he knows there are other issues affecting them beyond what the Minister of Finance tells him,” Muhumuza added.

Thaddeus Musoke, the Chairperson of the Kampala City Traders Association (KACITA), said that the issues with the city traders would have been handled by the Ministers of Trade and Finance, but unfortunately he was not responding to the traders who tried to reach out to him, saying that they found talking to President Museveni convenient.

In a meeting held by President Museveni with the leadership of traders from Kampala and upcountry districts at State House Entebbe on Friday, April 19, 2024, the President directed URA to suspend with immediate effect the implementation of tax penalties on EFRIS and give room for wider consultations into the matter.