KAMPALA- There is a sigh of relief among the traders not only in Kampala but Uganda as a whole after the Fountain of Honour, H.E Yoweri Kaguta Museveni ordered a waiver regarding the taxes that had forced traders to close business.
Traders this week announced protests against unfair taxes and Uganda Revenue Authority (URA)’s Electronic Fiscal Receipting and Invoicing Solution (EFRIS) citing unfair tax policies.
The relief was after President Museveni’s Friday directive to URA to suspend all penalties against the traders for the meantime to give room for wider consultations, according to State House press unit.
Sources from State House have it that the delegation of 61 leaders of traders was led by John Kabanda, the leader of the Federation of Uganda’s Traders Associations (FUTA) and Thaddeus Agenda Musoke, the leader of Kampala City Traders Association (KACITA).
“The discussions mainly centred on the taxation levied on their businesses, especially the EFRIS system. During the meeting, the President informed the traders that he will meet the technocrats from the Ministry of Finance, Planning and Economic Development and URA on the April 24, 2024 for wider consultations. The President also noted that he will then meet with all the traders on May 7, 2024 at Kololo Ceremonial Grounds,” reads part of a Friday evening statement issued by Mr Museveni’s press team.
During the meeting, the leaders of the traders told Mr Museveni that the tax on textiles calculated based on kilograms was high, that manufacturers who engage in wholesale and retail leave no room for traders to do business, resulting in unfair trade.
They also said 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 that the threshold for Value Added Tax (VAT), which is currently an annual turnover of Ugx 150m, should be increased, among others.
Hours after the meeting, Museveni who has been boasting of a booming economy, better than he found in 1986 when he shot to power and there was scarcity of goods and services, took to his X handle to ask whether traders want to build Uganda or other countries by trading in goods produced by them.
