President Yoweri Kaguta Museveni is set to engage with traders once this Thursday to discuss the implementation of the Electronic Fiscal Invoicing and Receipting Solution (Efris). Additionally, he will provide updates on textile taxes and finalize discussions on the Value Added Tax (VAT) threshold.
Scheduled at Kololo Ceremonial Independence Grounds, this meeting marks the third such event in two months, following the recent announcement of a Shs72 trillion budget for the 2024/2025 fiscal year.
Background on Previous Meetings
The initial meeting between the President and traders' representatives took place on April 19, after a weeklong strike that saw traders in Kampala and other cities shutting their shops in protest against what they perceived as the harsh implementation of Efris by the Uganda Revenue Authority (URA) and unfair taxation. Following a subsequent meeting, the traders reopened their businesses.
A significant follow-up meeting occurred on May 7 at Kololo Ceremonial Grounds, where traders presented their concerns. In response, President Museveni instructed URA to waive penalties and allow the use of affordable smart mobile devices and printers, priced at Shs150,000, instead of the mandatory purchase of Efris machines.
Implementation of Efris
Launched on January 1, 2021, Efris is an automated compliance system requiring VAT-registered businesses with annual sales exceeding Shs150 million to adhere. The system involves the use of Electronic Fiscal Devices (EFD) for generating e-invoices and e-receipts, enabling URA to monitor transactions in real-time.
Expectations and Future Plans
Isa Sekito, the spokesperson for the Kampala City Traders Association (Kacita), expressed optimism regarding the upcoming meeting.
"We are hopeful about this meeting because the President initiated it. However, when he met with manufacturers, his social media post suggested a possible acceptance of the kilo tax, which we oppose," Sekito stated.
Sekito also mentioned a follow-up meeting planned for June 21, where traders will evaluate the outcomes of their discussion with the President.
"After our meeting with the President on June 20, we will convene on June 21 to review our achievements and challenges to determine our next steps as traders," he added.
Following President Museveni's directive to waive Efris penalties, URA complied, benefiting over 2,000 traders. This move is viewed positively, addressing some of the longstanding issues between the traders and the tax authority.
The forthcoming meeting is highly anticipated, with traders hoping for resolutions that will positively impact their businesses and address their concerns comprehensively. The big question that however remains is - will the President finally side with them or?
