Home Africa More shops closed in Masaka as traders protest URA tax system

More shops closed in Masaka as traders protest URA tax system

More shops closed in Masaka as traders protest URA tax system

Rédaction Africa Links 24 with Uganda Monitor
Published on 2024-04-11 12:14:05

Traders in Masaka City who initially hesitated to participate in the protest against Uganda Revenue Authority’s (URA) Electronic Fiscal Receipting and Invoicing Solution (EFRIS) have now joined the demonstration. The bustling business hubs in Masaka, such as Kikuubo lane, Jathebai Street, and Kabaka Mutebi II Street, saw closed shops as traders voiced their grievances. In addition, major wholesale businesses and shops selling agricultural inputs on streets like Buddu Horbert and Elgin also remained closed during the protest. However, many retail shops on other streets in the city were open for business.

Ali Pio Mukasa, a representative of Kikuubo traders to Masaka City Traders Association, explained that they initially refrained from participating in the protest on the first day due to short notice and the need to cater to their Muslim clients preparing for Idd-ul-fitr. However, they have now decided to join the strike until the government addresses their demands as traders.

The ongoing protest, which started in Kampala on Monday and reached Masaka on Tuesday, aims to bring attention to President Museveni regarding various issues affecting traders. These issues include concerns about Chinese investors selling goods directly to consumers, as well as the controversial EFRIS system. The protesters had reportedly planned to meet with President Museveni at Kololo Airstrip in Kampala, but a statement from the Presidential Press Unit (PPU) on April 10, 2024, clarified that there was no scheduled meeting with the striking traders as rumored on social media.

Traders are particularly opposed to the implementation of EFRIS, which tracks the payment of Value Added Tax (VAT). URA introduced EFRIS in 2019 to integrate their system with that of the business community, aiming to ensure accurate recording of sales and taxes collected. Initially enforced in big companies and supermarkets in 2022, EFRIS was later extended to all businesses with annual gross sales of over Shs150m, making them VAT payers.

Despite URA’s efforts to sensitize traders on EFRIS, the traders believe that the system is detrimental to their businesses. They accuse URA’s enforcement teams of implementing EFRIS in a harsh manner that drives away customers and negatively impacts their sales. However, URA officials maintain that EFRIS implementation will continue as it has improved tax system transparency and expanded the tax base.

In conclusion, the protest against the EFRIS system in Masaka City has gained momentum as more traders join in to voice their concerns to the government. The issues raised by the traders, including the impact of EFRIS on their businesses, require attention and resolution to ensure a fair and conducive business environment for all parties involved.

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