Anitah Among, the Speaker of the Parliament of Uganda, has expressed concern over the ongoing sit-down strike by traders regarding the Electronic Fiscal Receipting and Invoicing System (EFRIS). Addressing the issue during a parliamentary session, Speaker Among emphasized the necessity of constructive dialogue to resolve the matter, highlighting the significant impact of the prolonged strike on business operations.
“We need to have a constructive dialogue to resolve this matter. We can’t have shops closed for all these days,” Speaker Among stated, underlining the urgency of finding a solution to the impasse. She announced that the Minister would provide a statement on the matter later in the day, indicating Parliament’s commitment to addressing the concerns raised by the traders.
The sit-down strike by traders has persisted for several days, leading to the closure of numerous shops and businesses across the country. The primary grievance of the traders revolves around the implementation of the Electronic Fiscal Receipting and Invoicing System (EFRIS), which they argue has imposed undue burdens and operational challenges on their businesses.
City traders, represented by various umbrella bodies and led by the Kampala City Traders Association (KACITA), have declared a countrywide closure of shops in protest against the implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) by the Uganda Revenue Authority (URA). The strike, which began on 16th April, reflects the traders’ dissatisfaction with the newly-imposed tax regulations and demands for government intervention.
The ongoing strike, announced by Mr. Thadeus Musoke Nagenda, chairman of KACITA, aims to draw attention to several grievances voiced by local traders across the country. Among the primary concerns raised is the enforcement of EFRIS, which has resulted in increased tax burdens and operational challenges for businesses. Traders argue that the system’s requirement for taxation based on the weight of goods has led to financial strain and hindered their ability to conduct business effectively.
Additionally, traders are protesting against what they perceive as unfair competition from foreign investors in the retail sector, which they claim has eroded their profit margins and threatened their livelihoods. The influx of foreign investors, coupled with non-standardized URA valuation guidelines for imported and exported goods, has exacerbated tensions within the business community.
Mr. Nagenda emphasized the necessity for collaboration among traders to ensure that their concerns are addressed by the government. He highlighted the importance of respecting the views of traders and urged for a unified approach to resolving the issues at hand.
Despite offers from URA to waive penalties and fines on confiscated containers, traders have rejected these concessions, citing concerns about the continued financial burden imposed by taxation policies. The demand for increased transparency and accountability in tax enforcement, coupled with calls for lower interest rates on loans for local businesses, reflects the broader challenges faced by traders nationwide.
In response to the strike, Mr. Luke Owoyesigyire, Deputy Kampala Metropolitan Police spokesperson, assured that the police would deploy fully to maintain peace and protect traders who choose to keep their shops open. He cautioned against any attempts to coerce or intimidate traders into participating in the strike, emphasizing the importance of individual choice and safety.
Meanwhile, Parliament had directed the Ministry of Trade and Finance to address the concerns raised by Kampala City Traders and report back on the matter. With URA tasked with collecting taxes amounting to Shs31.574 trillion for the upcoming fiscal year, the government faces pressure to balance revenue targets with the need to address traders’ grievances and support economic growth.
