By Samson Mulumba
President Museveni assured traders on taxes retaliating URA’s position that government will not be compromised on tax cuts because the state needs revenue to finance both recurrent and development expenditures.
While meeting traders at Kololo Independence grounds, the President also assured traders that the government will not abandon the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) because it’s an efficient and effective system of tax payers monitoring method.t
This annoyed traders and where storming out of the meeting as President Museveni was still talking because they felt the president wasn’t bothered about their tax concerns only to be forced to stay.
However, HE agreed with traders on how EFRIS is being implemented and he directed URA to make it easy and simpler for traders to pay taxes and also vigorously sensitize them to learn the contrast EFRIS system.
The president took much time listening to the grievances of the traders which were presented by the leaders of the different Associations.
Kampala City Traders Association (KACITA) chairman Thadeous Musoke Nagenda opened the floor and on behalf of the traders he asked government to revise the threshold of Value Added Tax (VAT) up wards from the current UGX150 to 1billion.
Musoke argued that at the time of inception of VAT in 1995, the exchange rate of a dollar to Uganda shilling was 1,040 and the current is US$ 1 to UGX 4820 yet the threshold is still the same after 25 years.
“Your Excellence in the trade Subsector you have sons, grandsons, friends and those who don’t like you because your workers have annoyed them, therefore we ask you to use your long hand and touch on those errant worker and discipline them.” Musoke prayed.
John Kabanda the chairman of Federation of Uganda Traders Assoctions (FUTA) informed the fountain of honor that EFRIS is destroying small businesses slowly but steadily and with time traders engaged in such level of trading will be forced out of business.
Basing on this back ground, Kabanda asked government to spare small traders owning shops from using EFRIS and leave it on Manufactures only because they can afford to hire specialists who can handle it on their behalf.
Kabanda also informed the President that there’s no clear yardstick by used by URA officials when collecting taxes from traders where he gave an example that they evaluate the taxes one ought to pay at Nakawa and after payment is effected goods are released and when they are being transported to the Traders warehouse the same officials stops the vehicle along the way claiming that the valuation was erroneously made and they force you to take it back to Nakawa for revaluation something that is very inconveniencing.
The (FUTA) leader also wandered why the president directs certain things to stop for instance EFRIS penalties imposed on traders by URA and these have not removed.
“Mr. President we are baffled with the situation we can’t tell who is the leader of this country because what you direct is not being implemented.” Kabanda said.
He also informed the President that the majority of traders are less educated and EFRIS required formal skills and knowledge which people in the Subsector are lacking and this has made them fail to understand and adhere to it totally.
“I tried to learn how to use the EFRIS machine but failed and the majority people I lead told me that they also failed besides that, this system doesn’t cater for instalment payments which is convenient to us because we thrive on borrowed funds from banks and SACCOs and we have to meet the obligation of servicing such loans at the same time.
Edward Ntale the chairman of United Arcade Traders Entrepreneurs Association (UATEA) also informed the President that Uganda National Bureau of Standards (UNBS) has also became a hindrance for trade due to the high charges it levies on the issuance of permits.
In his remarks the President also told the traders that he is going to study the tax imposed on garments basing on weight(kilograms) after which he will meet their leaders and inform them his decision and he will later on 20th June 2024 meet all traders again.
“You know I have clocked 80 years, God is about to call me to meet him. You who still have more years on earth you have to plan for our nation.“President Museveni said
He also asked traders to refrain from opposing tax policies because they are geared towards collecting tax revenue that can help develop the social and economic infrastructures and extending government service.