Following a meeting with President Museveni on Friday night, traders protesting against Uganda Revenue Authority’s (URA) Electronic Fiscal Receipting and Invoicing Solution (EFRIS) system have agreed to reopen their businesses. In a statement from State House, the president directed URA to suspend all penalties temporarily to facilitate broader consultations.
The delegation of 61 traders, led by Kabanda John of the Federation of Uganda’s Traders Associations (FUTA) and Dr. Musoke Thadeus Agenda of the Kampala City Traders Association (KACITA), engaged in discussions primarily focused on the taxation imposed on their businesses, particularly regarding the EFRIS system. The traders agreed to resume operations while continuing consultations with the government.
President Museveni, in a social media statement, confirmed the meeting’s outcomes, highlighting concerns raised by traders regarding textile taxation and the impact of manufacturers engaging in wholesale and retail on traders’ business opportunities. He acknowledged the traders’ grievances with the EFRIS system and indicated openness to reconsidering the Value Added Tax (VAT) threshold, currently set at an annual turnover of Shs 150 million.
Museveni urged traders to reflect on whether they wish to contribute to building Uganda’s economy or inadvertently support other countries by trading in goods produced elsewhere. He emphasized the need to retain wealth within Uganda rather than allowing it to flow out of the country.
While announcing another meeting scheduled for May 7 at Kololo independence grounds to further address these issues, Museveni encouraged traders to resume their activities as consultations with technocrats continue.
The decision to end the protest followed several days of demonstrations primarily against the implementation of URA’s EFRIS system.
