The Uganda Revenue Authority (URA) has clarified that the recent protests against systems like EFRIS stem not from inadequacies but from a perceived encroachment on individuals’ revenue.
Ibrahim Bbosa, spokesperson for the authority, emphasized that their primary concern is the collection of Value Added Tax (VAT) by traders without subsequent remittance. Speaking on the UBC Good Morning Uganda program, Bbosa highlighted Uganda’s comparatively low tax burden in the region.
“Following a directive from the President to halt penalties for traders unfamiliar with EFRIS, URA has diligently implemented this, withdrawing enforcement from Kikuubo,” Bbosa stated.
Bbosa further explained that after deploying operatives in Kikuubo, VAT collection increased by 500% within a month, revealing significant leakage issues and necessitating EFRIS implementation.
Joshua Mawerere, youth leader of the Kampala City Traders’ Association (KACITA), expressed traders’ concerns following a recent meeting with the President, citing a lack of clarity in tax justifications.
“The traders were particularly agitated by a misrepresentation, using a former member of parliament’s experience as an example of a typical trader,” Mawerere explained.
During a gathering in Kololo, the President addressed traders’ concerns, stating that their reasons for seeking the suspension of VAT lacked validity.
EFRIS, a digital system facilitating direct VAT billing information transfer between businesses and URA, was implemented in 2021 to address tax administration challenges. The system aims to ensure accurate tax assessments and foster business growth through improved record-keeping and monitored stock and sales.
