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President Museveni Directs URA On Implementation Of EFRIS With Immediate Effect

President Museveni has directed the Uganda Revenue Authority on the implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS). This followed his meeting with traders under the Kampala Capital City Traders Association (KACITA) last night at State House, Nakaseero.

These traders included those from Kampala, Wakiso, and Entebbe. It should be noted that different traders in the country have closed their businesses for a couple of days now.

This followed the introduction of the EFRIS system by the tax collecting body. There have been different opinions about this system. URA has maintained that this is not a tax unlike what has been flying around.

According to the Nakawa-based entity, it’s a system that will ensure tax compliance whilst helping traders smoothly run their businesses.

However, traders were adamant saying that it’s a system that is going to fail their businesses which are already struggling. After their meeting with Museveni, they concluded that they would open up. Museveni said that he listened to all the issues that they raised.

“I met the leaders of traders from Kampala and other districts at Entebbe. I listened to their issues, which included: 1. The tax on textiles calculated based on kilograms is high. 2. Manufacturers who engage in wholesale and retail leave no room for traders to do business, resulting in unfair trade. 3. 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. 4. The threshold for Value Added Tax (VAT), which is currently an annual turnover of Shs 150m, should be increased.”

The questions that need answers;

President Museveni, however, also had some questions for these traders. He asked them if they wanted Uganda to develop by trading in goods produced by itself or goods from other countries.

Furthermore, the President asked if the country should continue causing a hemorrhage by using the little obtained from the agricultural sector to buy goods from abroad.

He also asked them to give him some time as he makes further research on the issue. He will meet them on 7th May at Kololo with a final verdict. In the meantime, URA has been ordered to refrain from implementing anything.

“I have asked the traders to give me time to research more and consult the technocrats on all the concerns they raised. I will then meet them all on 7th May, 2024, at Kololo to discuss further. In the meantime, I have directed that URA refrain from issuing penalties and recovering any penalties that have already been issued, but taxpayers must continue to pay their taxes as usual. It is good they have agreed to open up their businesses as we continue to find solutions to the issues raised.”

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