President Museveni to Meet City Traders to Address Concerns over EFRIS Implementation
President Yoweri Museveni will meet city traders this Thursday, represented by the Kampala City Traders Association (KACITA), Uganda Cargo Consolidators, and Kampala Rice Traders, to discuss the implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).
President Yoweri Museveni is scheduled to meet with city traders this Thursday 20th June 2024 under the umbrella organizations of the Kampala City Traders Association (KACITA), Uganda Cargo Consolidators, and Kampala Rice Traders to discuss the implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).
The meeting aims to evaluate the process of implementing EFRIS. City traders have expressed concerns over taxation and penalties resulting from the failure to remit VAT, as well as the competition from Chinese traders in local markets.
The business community has protested against the system, closing shops in Kikuubo and downtown, citing issues of double taxation and a lack of information about EFRIS. They argue that the system is expensive to implement since it requires devices such as computers or smartphones and a gadget for printing receipts.
Traders also contend that high import values are making it difficult to clear goods and that the high cost of living is rendering essential goods unaffordable for the average consumer.
The Uganda Revenue Authority (URA) began implementing EFRIS in 2021 to address challenges in tax administration related to business transactions and the issuance of receipts. The system aids the URA in assessing the correct taxes using accurate and authentically generated information. Additionally, it helps businesses by improving record-keeping and monitoring stock and sales.
The implementation of EFRIS aims to ensure equity in tax collection, particularly for VAT, and to enhance transparency. The system is expected to double total VAT collections from Shs3.5 trillion to approximately Shs7 trillion.
