EFRIS Is Going No Where!! Museveni Tells Angry Traders To Relax And Cope Up , Reveals Why EFRIS Is A Must

President Yoweri Museveni has cleared the implementation of Electronic Fiscal Receipting and Invoicing Solution (EFRIS).Museveni said this while meeting city traders under the umbrella bodies of the Kampala City Traders Association (KACITA), Uganda Cargo Consolidators, and Kampala Rice Traders at Kalolo ceremonial grounds.

URA started implementing EFRIS in 2021 to address tax administration challenges relating to business transactions and the issuance of receipts. The system helps URA assess the right taxes using accurate and authentically generated information. It also enables businesses to thrive with improved record-keeping and monitored stock and sales, among others.

The implementation of EFRIS will ensure not just equity in tax collection, especially VAT, but also transparency. The system is expected to double total VAT collections from Shs3.5 trillion to about Shs7 trillion.Tanzania and Rwanda adopted EFRIS over 10 years ago. These countries collect 33% and 30%, respectively, of their total tax revenue through VAT. Uganda is currently collecting about 15% VAT of its total tax revenue, and this amounts to Shs3.5 trillion.

Earlier, city traders decried over taxations and penalties arising from failure to remit VAT and the Chinese invasion of the local markets.

“We tax imports to encourage Ugandans to buy more Ugandan-made products and allow imports for items that we cannot effectively manufacture domestically. Your first claim is that there are too many taxes in Uganda. This is not true. The policy of the government on taxes is deliberate. We normally don’t tax what builds Uganda,” Museveni said.

He noted that the government abolished tax on export of coffee and other products yet when NRM came into power that was the tax that was used to support the government.

“I don’t see anything or danger in paying VAT because it is not too much to pay and it is paid by the final consumers. It brings in more revenue and protects local manufacturers. Therefore, it is not double taxation because you don’t pay what others pay,” he said.

“I propose that you don’t have to pay VAT immediately, you can pay when you get money or at the end of the financial year. I don’t think you should oppose VAT and the EFRIS system because Uganda needs to stand on its own through taxation, manufacturing and exporting to other countries,” he said.

He urged URA and leaders in the business community to iron out some issues because EFRIS doesn’t define who paid cash, took products on credit or hawking because it is programmed that every buyer pays cash. He abolished all the penalties against traders who defaulted on paying VAT.

He noted that the argument that the government doesn’t support local investors is a lie. Over 315 of the 450 companies in Namanve are owned by Ugandans like Gaster Lule Ntake, Prudence Kasibante Ukkonika and others.

“The issue I am going to follow up on is about the Chinese, but they are not bad people. They have set up factories and saved Uganda $40 million by importing products such as tiles. Countries like America have developed because they welcome investors and we should do the same,” he said.