President Museveni is scheduled to convene with city traders today to announce his verdict on the tax issues raised by the business community, encompassing the issuance of electronic receipts for Value Added Tax (VAT) registered taxpayers and associated penalties.
Mr Sandor Walusimbi, the Senior Press Secretary to the President, confirmed the meeting, stating, “The President will engage with the traders tomorrow [Tuesday] at Kololo regarding taxation and other pertinent matters.”
Last month, traders staged a strike, contesting various issues, including the implementation and enforcement of the Electronic Fiscal Receipting and Invoicing Solution (Efris), penalties for non-compliance, elevated taxes on imported garments, URA’s bank agency notices on traders’ accounts, and allegations of corruption within tax enforcement personnel.
Traders argue that Efris is intricate, necessitating the employment of individuals with IT and accounting competencies to operate it, which poses challenges for many wholesale traders with limited formal education.
In response to the traders’ grievances, President Museveni intervened, temporarily halting penalties for Efris defaulters while seeking consultation with multiple ministries regarding the raised concerns.
Under the law, evading taxes through manipulation of Efris incurs a penalty of Shs6 million.
Anticipating the President’s decision, traders’ leaders anticipate a significant turnout at the Kololo Ceremonial Grounds. Mr Moses Lwegaba, President of the Federation of Uganda Traders Associations, expects over 10,000 traders to attend, mobilizing them to hear the President’s verdict.
Commenting on the potential ramifications, tax consultant Mr Samuel Asiimwe cautioned that upholding Efris and VAT across all levels could lead to price hikes, adversely affecting rural consumers.
Since the implementation of Efris, local manufacturers have been directly distributing their products to rural retailers, a practice wholesale traders argue contravenes the Competition Act of 2023.
