Kampala Traders Protest URA’s EFRIS System, Citing Double Taxation

Summary:

• Traders in Kampala protested the implementation of EFRIS by the URA, citing concerns about double taxation and confusion over automated systems. The URA refuted claims of double taxation, attributing them to middlemen. The protest led to heavy security deployment, with two arrests made. EFRIS aims to improve tax transparency by recording all transactions.

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KAMPALA, (Examiner) – Traders in Kampala took to the streets today to protest against the Electronic Fiscal Receipting and Invoicing System (EFRIS) recently implemented by the Uganda Revenue Authority (URA).

In a bid to draw attention to what they perceive as heavy-handedness and double taxation by the URA, traders shuttered their shops, expressing frustration with the new system.

EFRIS, introduced by the government on July 1, 2020, aims to streamline taxation procedures by digitizing the issuance of electronic invoices and receipts for business transactions. Its implementation was intended to address various challenges such as unfair tax assessments, inadequate business records, and complex tax procedures.

Critics among the traders claim that EFRIS amounts to double taxation, citing confusion over automated sales records and levy systems.

In response, URA Commissioner General John Musinguzi Rujoki dismissed claims of double taxation, attributing them to middlemen known as “container leaders” who allegedly exploit small businesses by inflating charges.

Rujoki urged business owners to pay taxes directly and advised transparency among middlemen to ensure fair tax collection.

The protest prompted a heavy security presence in downtown Kampala, with military and police deployed to prevent potential violence. At least two protesters were reportedly arrested.

Authorities emphasize that some businesses operate informally to evade taxes, but EFRIS aims to record every transaction, enhancing tax transparency.

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