By Spy Uganda
Kampala:Traders in Kampala under their umbrella body Kampala City Traders Association (KACITA) have closed down their in protest against high import taxes and Uganda Revenue Authority(URA) tax collection system known as the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), among other concerns.
The strike follows the postponement of the meeting between the traders and President Yoweri Museveni to discuss these issues which was expected to take place on July 31, but was rather postponed to an unspecified date in August.
The spokesperson for KACITA Mr. Issa Ssekitto has called upon traders to remain calm noting that KACITA will not be responsible for any disruptions caused during the protest.
”Those who see sense in closing their shops; remain peaceful, don’t cause chaos. We’re responsible citizens. Just lock and go home. We shall not be responsible for anybody who causes problems to the rest,” he said.
The traders commenced their strike today which has seen the majority of shops in down town closed while a few others remain open. The traders are protesting the enforcement of the EFRIS system, saying that they were not sensitized and also lack the requisite infrastructure to use the system.
In his first meeting with the traders in may this year, President Yoweri Museveni maintained the use of EFRIS for Value Added Tax collections but advised URA to suspend fines and penalties for non-compliant traders and also encouraged dialogue between taxpayers and tax collectors.
During the meeting, President Museveni also observed that EFRIS was not the problem and further instructed URA to meet leaders of the business community to solve inconsistencies that come with automation.
Additionally, Museveni advised URA not to force traders to use the EFRIS machine but rather be flexible and let the traders use cheaper options like mobile phone technology for the same reporting. This flexibility according to the president, should also extend to the payment period, to allow payments at the end of the financial year.
On the other hand, Museveni also told the traders that the government’s taxation policy on importation is deliberate, to discourage imports and encourage local production.
“Importation is taking blood out of our economy, for example, Uganda imports garments of up to USD 800 million, which is almost the money we make from coffee exports annually. But if you focused on products you would be adding blood, because all this money would be retained here, and create more jobs,” he said while meeting traders and business community leaders at Kololo independent grounds in May this year.
