Finance Minister Matia Kasaija has announced that traders across Uganda have agreed to suspend their protests and resume normal business operations following discussions with government officials over critical issues affecting their businesses.
The decision to suspend the protests came after a meeting between representatives of traders and government officials to address concerns related to the implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) by the Uganda Revenue Authority (URA) and other pressing issues affecting traders.
Traders had been protesting against the rollout of EFRIS, a digital platform facilitating the direct transfer of Value Added Tax (VAT) billing information between businesses and URA.
They argued that EFRIS amounted to double taxation and presented several challenges, including high compliance costs and a lack of understanding among traders.
During the meeting, traders raised various issues, including a call to increase the VAT threshold from Shs150 million to Shs1 billion and a reduction of the VAT rate from 18% to 16%. They also expressed concerns over import duties on fabrics and garments, which they deemed excessively high.
Additionally, traders voiced dissatisfaction with non-standardized valuation guidelines for imported goods by URA, highlighting discrepancies in values assigned to the same imported items at different times and for different importers.
Furthermore, traders raised concerns about anti-competition practices by manufacturers, particularly foreign investors, engaging in distribution, wholesale, retail, and hawking of their products, which undercut prices and affected the competitiveness of local traders.
In response to these grievances, Minister Matia Kasaija issued a statement outlining the agreements reached during the meeting. It was agreed that traders would suspend their protests and immediately resume normal business activities while the government concludes internal consultations and engages further with trader leadership.
Specific actions were outlined, including URA establishing an office in Kikuubo, Kampala, to provide EFRIS support services and to sensitize traders about the system’s workings. URA will also exercise more sensitivity in EFRIS enforcement and show restraint in issuing penalties for non-compliance.
Moreover, the Finance Ministry will study and consult on proposals to increase the VAT threshold and revise VAT rates within the next two weeks, taking into account trader input and relevant findings from consultations.
