President Yoweri Museveni has engaged in dialogue with striking traders, urging them to grant him time for further research and consultations regarding their grievances.
“I have asked the traders to give me time to research more and consult the technocrats on all the concerns they raised. I will then meet them all on 7th May, 2024, at Kololo to discuss further. In the meantime, I have directed that URA refrain from issuing penalties and recovering any penalties that have already been issued, but taxpayers must continue to pay their taxes as usual. It is good they have agreed to open up their businesses as we continue to find solutions to the issues raised.”
The meeting, held at State House Entebbe on Friday, culminated in an agreement to reconvene on May 7, 2024, at Kololo for further discussions. In the interim, President Museveni directed Uganda Revenue Authority (URA) to refrain from imposing penalties related to the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), while emphasizing the continued obligation of taxpayers to fulfill their tax duties.
The traders’ strike stemmed from various concerns, notably opposition to the implementation of the EFRIS system for value-added tax (VAT) payments to URA. Additionally, traders expressed dissatisfaction with what they perceived as heavy-handed enforcement measures by URA. This discontent led to the closure of shops in Kampala’s central business district and other districts across Uganda.
At the meeting, President Museveni engaged with representatives from the Federation of Uganda’s Traders Associations (FUTA) and the Kampala City Traders Association (KACITA), led by John Kabanda and Dr. Thadeus Agenda Musoke, respectively. Discussions primarily focused on taxation issues, particularly regarding the EFRIS system.
Following the dialogue, President Museveni committed to meeting with Ministry of Finance, Planning and Economic Development and URA technocrats on April 24, 2024, for further consultations. The traders’ leaders agreed to reopen their businesses while continuing consultations with the government.
The traders’ demands include suspending the EFRIS system and related enforcement operations in Kampala, along with calls for the return of foreign investors to their factories. They seek reductions in tax values, an increase in the VAT threshold, and adjustments to income tax brackets and import duty taxes on textile garments.
President Museveni emphasized the importance of prioritizing Uganda’s economic interests, questioning whether the nation should serve as a marketplace for foreign goods rather than focusing on domestic production and development. He reiterated Uganda’s need to retain its resources and prevent economic hemorrhage by promoting local industries.
Additionally, the Government is finalizing preparations to introduce the Competition Act regulations, aimed at streamlining business practices and addressing underlying issues contributing to the traders’ strike. These regulations will govern joint ventures, acquisitions, and mergers, with a focus on promoting fair competition in the market.
