Traders protesting the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) system by the Uganda Revenue Authority (URA) have agreed to reopen their businesses following a Friday night meeting with President Museveni.
In a statement from State House, the decision came after President Museveni directed URA to suspend all penalties temporarily to allow for wider consultations. The meeting, led by Kabanda John of the Federation of Uganda’s Traders Associations (FUTA) and Dr. Musoke Thadeus Agenda of the Kampala City Traders Association (KACITA), included a delegation of 61 trader leaders.
“The discussions mainly centered on the taxation levied on their businesses, especially the EFRIS system. The leaders of the traders agreed to reopen their businesses as they continue to consult further with the government,” the statement read.
President Museveni confirmed the development on social media, acknowledging concerns over high taxes on textiles and the challenges faced by traders dealing with manufacturers in wholesale and retail.
“I listened to their issues, including the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), which they claim is not suitable for most of them, and when they don’t use it, they are penalized. The threshold for Value Added Tax (VAT), currently an annual turnover of Shs 150 million, should be increased,” Museveni stated.
While urging traders to consider the impact of their actions on Uganda’s economy, Museveni emphasized the need to prioritize local production and prevent capital flight.
Another meeting is scheduled for May 7 at Kololo Independence Grounds to address the ongoing issues, while traders will resume operations as consultations continue.
The decision to reopen businesses follows protests since Tuesday, primarily focusing on the implementation of the EFRIS system by URA
