Kampala Central Mayor, Salim Uhuru, has called on leaders in the business community to unite and find solutions for the challenges posed by the implementation of the Electronic Fiscal Receipting and Invoicing Solutions (EFRIS). Speaking to journalists in Kampala on Tuesday, April 16, 2024, Mayor Uhuru expressed his support for the business community while emphasizing the need for unity among its leaders, such as the Kampala City Traders Association (KACITA) and The Federation of Uganda Traders Association (FUTA).
“As a businessman myself, with over 60 years of experience, I stand here in solidarity with the business community. I want to thank all the leaders of the business community, the KACITAs, the FUTA, and all other groups. My appeal to them is to present a united front,” stated Mayor Uhuru.
Mayor Uhuru believes that once the business leaders set aside their differences, they will be better positioned to achieve their objectives. He also called for a meeting with President Museveni, asserting that traders who have diligently paid their taxes deserve to have their voices heard.
“There must be a meeting with the President, and it should have taken place yesterday. These are Ugandans who deserve to be heard. I support their call for an urgent meeting with the President, and I trust that it will happen soon,” Mayor Uhuru expressed.
He further highlighted the financial burden faced by traders, citing exorbitant fines totaling 666 million Ugandan shillings due to non-compliance with EFRIS regulations. Mayor Uhuru emphasized that the issue was not about refusing to pay taxes but rather the method employed by the EFRIS system.
These developments occurred after Dr. Tadius Musoke, Chairman of KACITA, called off the planned city traders strike, announcing that key stakeholders and leaders would meet with President Museveni on Friday, April 19, 2024.
Economists, including Robert Ssuuna, have defended the EFRIS system, arguing that it effectively closes tax loopholes. However, traders contend that the implementation exposes them to a heavier tax burden, as it uncovers previously hidden taxes such as withholding tax, income tax, and value-added tax (VAT).
In response to the concerns raised, the Uganda Revenue Authority (URA) has assured traders of constructive dialogue, education, and sensitization campaigns within the business community. The URA defends the benefits of EFRIS, asserting that it streamlines VAT collection, improves record-keeping, and promotes the use of electronic receipts.
The Federation of Uganda Traders Association (FUTA) has accused KACITA of compromising their interests by entering into a memorandum of understanding with the URA. FUTA alleges that this compromise has led KACITA to discourage the strike, which they believe is not in the best interest of the traders.
As the discussions continue, the business community remains hopeful that a resolution can be reached, ensuring equitable taxation and smooth implementation of the EFRIS system.
