Traders in downtown Kampala, known as Kikuubo, closed their shops in protest against a new system called the Electronic Fiscal Receipting and Invoicing System (EFRIS). This system was introduced by the Uganda Revenue Authority (URA) a few months ago. It requires businesses to keep electronic records and issue electronic receipts and invoices.
The traders believe that this new system leads to double taxation. They also express difficulty in understanding how to use the automated record-keeping and tax system. They see it as an additional burden on their businesses.
Police responded to the protests by arresting two individuals who were burning car tires at Nabugabo Plaza. The deputy Kampala Metropolitan police spokesperson, Mr. Luke Owoyesigyire, stated that the police are investigating allegations of inciting violence against these individuals. He assured the public that security measures would remain in place to ensure the safety of traders who wish to open their shops.
On the other hand, URA has defended the new system, stating that they have engaged with traders and provided explanations about EFRIS. They believe that the protests are unjustified and suggest that the traders are resisting transparency and tax compliance.
The situation remains tense as traders continue their protest, demanding clarity and reconsideration of the new tax system. Police and military presence in downtown Kampala is expected to persist until the situation is resolved.
