UGANDA, Kampala | Real Muloodi News | Traders who had protested against unfair taxes and the Uganda Revenue Authority’s Electronic Fiscal Receipting and Invoicing Solution (EFRIS) have agreed to open their shops while their leaders engage in further consultations with the government. This decision came after a meeting with President Yoweri Museveni.
The agreement followed a Friday meeting at State House Entebbe between President Museveni and 61 leaders representing traders from Kampala and other areas across the country.
The delegation was led by John Kabanda, leader of the Federation of Uganda’s Traders Associations (FUTA), and Thaddeus Agenda Musoke, leader of the Kampala City Traders Association (KACITA).
State House announced that Mr Museveni directed the Uganda Revenue Authority (URA) to suspend all penalties against the traders temporarily to allow for broader consultations.
According to the State House, the discussions centred on the taxation levied on traders’ businesses, particularly the EFRIS system.
“The discussions mainly centered on the taxation levied on their businesses, especially the EFRIS system. During the meeting, the President informed the traders that he will meet the technocrats from the Ministry of Finance, Planning and Economic Development and URA on April 24, 2024, for wider consultations. The President also noted that he will then meet with all the traders on May 7, 2024, at Kololo Ceremonial Grounds,” stated Museveni’s press team in a Friday 19th April, 2024, evening statement.
During the meeting, the traders’ leaders expressed concerns over the high taxes on textiles based on kilograms, issues with manufacturers engaging in wholesale and retail, and challenges with EFRIS, which some traders found unsuitable.
They also proposed an increase in the threshold for Value Added Tax (VAT), currently set at an annual turnover of USh150 million.
Following the meeting, President Museveni posted on his X handle about the need to develop Uganda by trading in goods produced locally rather than relying on imports.
He emphasized that Uganda should not be a supermarket for other countries.
“I have asked the traders to give me time to research more and consult the technocrats on all the concerns they raised. I will then meet them all on May 7, 2024, at Kololo to discuss further. In the meantime, I have directed that URA refrain from issuing penalties and recovering any penalties that have already been issued, but taxpayers must continue to pay their taxes as usual. It is good they have agreed to open up their businesses as we continue to find solutions to the issues raised,” Museveni stated.
The meeting took place after a strike by traders, who had closed their businesses in protest against URA’s implementation of EFRIS.
The traders’ decision to reopen their shops is seen as a step towards finding a resolution to their concerns.
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