Traders in Uganda led by Kampala City Traders Association (KACITA) resolved to temporarily suspend their strike and reopen business after meeting President Museveni last night at State House, Entebbe.
It should be noted that traders in Uganda in different regions of the country had closed their businesses as a protest to the new taxes being levied by the Uganda Revenue Authority plus the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).
Business had shut down in several parts, a thing that prompted Museveni to meet the traders. URA has been advocating for the EFRIS system saying that it’s not a taxi and traders should avoid relying on propaganda.
On the other hand traders maintained that this system is going to put a strain on their already ailing businesses. No amount of compromise was going to let the traders reopen business and it only took the President’s interventions.
Museveni said that he carefully listened to what these traders had to say. and agreed that he met traders and listened to their demands that included tax on textiles, manufacturers who engage in wholesale and EFRIS among others.
“I met the leaders of traders from Kampala and other districts at Entebbe. I listened to their issues, which included: 1. The tax on textiles calculated based on kilograms is high. 2. Manufacturers who engage in wholesale and retail leave no room for traders to do business, resulting in unfair trade.” he stated and added that EFRIS was among.
“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. 4. The threshold for Value Added Tax (VAT), which is currently an annual turnover of Shs 150m, should be increased.”
The President however had a few questions for these traders too. He asked whether these traders want to help in the building of Uganda or if they want to develop other countries by trading in goods produced by them.
Furthermore, the President asked if Uganda must continue to cause a hemorrhage of the little that is made through agriculture and other sectors by sending our money outside. According to Mr. Museveni, Uganda should not be a supermarket for other countries.
The President said that he asked the traders to give him some time to consult on the issues they raised. He will then meet them on the 7th of May at Kololo grounds to find a way forward. In the meantime, he told URA not to issue any penalties or try to recover those that have already been issued.
“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 traders in Uganda on 7th May, 2024, at Kololo to discuss further” the president noted. And directed URA to stop issuing penalties to traders.
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“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.” he concluded.
