MPs have advised Uganda Revenue Authority-URA not to partially consider Kikuubo as the only business center in providing a remedy to the new taxation system of EFRIS.
Following a report presented by State Minister of Finance Amosi Lugoloobi on the outcomes of discussions between the Ministries of Finance, Trade, URA, and traders, MPs have advised Uganda Revenue Authority (URA) against solely focusing on Kikuubo as the solution to challenges posed by the new EFRIS taxation system.
Traders raised various issues including the high VAT rate of 18%, a 35% tax on imported garments, non-standardization of tax rates, decreased regional competition due to high tax regimes in Uganda, and concerns about investors engaging in retail trade.
Minister Lugoloobi stated that a consensus was reached to have the Ministry of Finance study and address traders’ concerns, particularly regarding VAT, within the next two weeks. Additionally, URA will continue implementing EFRIS by establishing an office in Kikuubo and increasing system sensitization.
The Ministry of Trade agreed to write to KCCA and other local governments to curb foreign investors engaged in retail businesses. Furthermore, URA committed to considering waiving penalties for traders who encountered issues with the EFRIS system.
Lugoloobi informed parliament that these resolutions might change as traders, represented by KACITA, are scheduled to meet President Museveni tomorrow.
Despite these discussions, traders continue their strike, now entering its third day.
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