Several traders in Kampala took to the streets recently protested against what they perceive as unfair taxes imposed by the government and the increasing competition from Chinese businessmen.
The traders’ main concerns revolve around the implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), a digital tax verification system used by the Uganda Revenue Authority (URA), the 18 percent Value Added Tax (VAT), and the perceived preferential treatment of foreign entrepreneurs.
According to Ismail Kiirya, the acting spokesperson for the Democratic Party (DP), the traders are not opposing EFRIS itself but rather the unjust implementation of the system.
Kiirya questions whether URA has taken proper steps to educate and familiarize traders with the EFRIS digital system. He raises concerns about the lack of sensitization efforts by URA, asking whether the traders have been adequately informed about the EFRIS and its benefits.
One of the key issues highlighted by the protesting traders is the alleged double taxation resulting from the use of EFRIS.
For instance, traders purchase goods such as cement from manufacturers like Tororo Cement and bring them to their shops. However, URA subsequently conducts shop audits and imposes additional taxes, leading to what the traders perceive as double taxation.
The traders demand clarification from URA on whether any commodities can leave a factory without being taxed. They question the fairness of such taxation practices.
The traders urge URA to address their concerns promptly and rectify what they consider to be an unjust system.
They emphasize the importance of proper sensitization and communication between URA and the traders to foster better understanding and service delivery.
Additionally, they request that the President of Uganda allocate time for these traders, just as he does for Chinese entrepreneurs, in order to address their grievances and find suitable solutions.
The protest highlights the growing discontent among traders in Kampala regarding taxation policies and the implementation of the EFRIS system.
As the government faces mounting pressure, it remains to be seen how URA and other relevant authorities will respond to the traders’ demands and work towards a more equitable and transparent tax regime that supports the growth of local businesses.