The Uganda People’s Congress (UPC) has appealed to the Uganda Revenue Authority (URA) to reconsider its implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), following widespread protests by traders across the country. The system, designed to streamline tax procedures by automatically transmitting transaction details to URA, has faced significant resistance from the business community, primarily due to its complexity and the perceived high tax burden it imposes.
Speaking at the party headquarters in Kampala on Wednesday, UPC President Jimmy Akena highlighted the difficulties faced by medium-sized enterprises with the rollout of EFRIS. Initially targeted at larger businesses, the expansion of EFRIS to include smaller enterprises has reportedly been problematic, with many business owners lacking a clear understanding of the new system.
“URA must adopt a gradual approach in implementing the EFRIS program, placing a strong emphasis on educating and engaging the business community about such policies regularly,” Akena stated. He stressed the importance of involving stakeholders in the development of such policies to ensure they are well-informed and prepared for changes.
The UPC leader also pointed out that the timing of EFRIS’s introduction has exacerbated tensions between traders and URA, particularly as businesses are still recovering from the economic impacts of the COVID-19 pandemic. “This not only affects internal business transactions and government revenue collection but also poses risks to regional trade,” he added.
Akena further criticized the government’s approach to tax policies, recalling UPC’s opposition to the Over-The-Top (OTT) tax and the mobile money tax, which he described as unfair burdens on taxpayers and hindrances to the growth of Uganda’s digital economy.
Moreover, Akena raised concerns about the discrepancies in tax waivers, which he argued disproportionately favor foreign investors over local traders. He called for fairness and equity in tax policy implementation to support the ‘Buy Uganda Build Uganda’ initiative and reduce conflicts in the trade sector.
Highlighting the ongoing increase in the national budget and the pressures it places on the government to meet tax collection targets, Akena urged the government to consider reducing expenditures that do not directly benefit the populace. He emphasized that the small taxpayer base, relative to the population, should be treated with care as it forms the backbone of Uganda’s economy.
Akena’s remarks reflect broader concerns about the need for balanced, equitable economic policies that support both government revenue goals and the interests of the business community.
