Mr. John Rujoki, the Commissioner General of the Uganda Revenue Authority (URA), acknowledged that the authority might have been hasty in penalising traders who struggled to comply with the new Electronic Fiscal Receipting and Invoicing System (EFRIS).
This admission comes amid widespread concerns from the business community regarding the challenges posed by the new technology.
URA implemented EFRIS as part of its efforts to streamline tax collection and enhance compliance among businesses. This system is designed to issue electronic receipts and invoices, thereby reducing errors and curbing tax evasion.
However, many traders have found it difficult to adapt to this technology. According to Mr. Rujoki, the transition to EFRIS has not been as smooth as anticipated.
"Technology is not a cup of tea for many people," Mr. Rujoki remarked, acknowledging that the URA underestimated the time and effort required for taxpayers to become proficient with the new system. "We could have rushed to penalise some taxpayers who were still having difficulty with understanding the technology," he added.
Recognising the difficulties faced by traders, Mr. Rujoki emphasized the importance of a transition period to allow businesses to adapt to EFRIS. He suggested that a more gradual implementation phase could have eliminated some of the resistance and confusion encountered by traders.
"We have realised the necessity for a transition period to enable Ugandans to get comfortable with the technology," he stated.
URA's initial approach included strict penalties for non-compliance, which many traders felt was unfair given their limited exposure to and understanding of EFRIS. This rigid stance sparked criticism and calls for a more lenient approach that considers the learning curve associated with new technologies.
The business community has voiced significant concerns about the implementation of EFRIS. Many traders argue that the URA did not provide adequate training and support during the rollout of the system.
"We need more time and assistance to fully understand how EFRIS works," said one trader. "Penalising us without proper support feels unjust."
Mr. Rujoki's admission signals a potential shift in the URA's strategy, as the authority aims to balance enforcement with support. The Commissioner General highlighted that the URA is committed to assisting traders in overcoming these technological difficulties.
"Our goal is to ensure compliance, but we also want to support our taxpayers in this transition," he said
URA plans to enhance its outreach and training programs. Mr. Rujoki outlined several initiatives aimed at easing the transition for traders, including:
URA will offer more extensive training sessions to help traders understand and navigate EFRIS. A dedicated support team will be established to provide real-time assistance to businesses encountering difficulties with the system.
URA is considering extending the transition period to allow traders more time to adapt without facing immediate penalties.
URA's recognition of its potentially rushed approach to penalising traders over EFRIS compliance reflects an understanding of the complexities involved in adopting new technology. By focusing on support and gradual implementation, the authority hopes to develop better cooperation and compliance among Uganda's business community.
Mr. Rujoki's statements emphasize URA's commitment to balancing enforcement with empathy, ensuring that while tax compliance is achieved, traders are not burdened during the transition to more advanced systems.
As URA moves forward with these initiatives, it aims to create a more supportive environment for businesses navigating the digital transformation in Uganda's tax administration.div widgetdiv widget
