Businesses in major towns across Uganda have remained paralyzed following a five-day protest by traders against new taxation rules proposed by the Uganda Revenue Authority (URA).
The taxman indicated that it would impose the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) to address tax administration challenges.
The strikes have led to unrest in the business community, prompting vendors to close their shops and protest on the streets to express their dissatisfaction.
According to the businessmen, the new taxation system will lead to double taxation when they are already grappling with high cost of living.
However, security measures have been beefed up in different parts of the country including the deployment of military officers to neutralize any violence.
Also Read: Uganda Govt Acts After Floods at International Airport
URA Defends the New Tax Rules
According to URA, the new invoicing solution had already led to an increase in tax collection in the central business district by 500 percent.
Also, the authority argued that EFRIS has also reduced incidents of underreporting sales by many traders.
Nonetheless, Twaha Kayondo, the Domestic Tax Officer at URA, said in a past interview that they are willing to have a sit down with the leaders of the business community.
“On the side of URA, we are willing to have a dialogue and we always dialogue with the traders, but some issues can’t be solved by us rather the line ministry, Ministry of Trade.”
At the same time, President Yoweri Museveni is scheduled to meet the community, a move that is expected to offer them temporary relief.
Also Read: Kenya Bows to Pressure, Grants Uganda’s Wish to Solve Oil Stalemate
Demands by the Businesses in Uganda
Members of the Federation of Uganda Traders Associations (FUTA) have continued to dig their heels on the ground saying that all businesses across the major centers including Kampala, Jinja, Luweero and Masaka City will remain closed until the directive is reversed.
Additionally, they have demanded that President Yoweri Museveni meet their leaders with immediate effect, explaining that they felt neglected and excluded from the decision-making processes.
Salim Uhuru, the Mayor of Kampala Central, supported the protesting traders. Despite being aligned with the ruling party; he recognizes the adverse effects of the tax system on the business community.
Earlier in the day chaos erupted in Kampala after a police patrol car allegedly knocked a bodaboda rider. The enraged traders confronted the officer who fled to the Nile Coach Police Post within Arua Park for safety.
