URA Commissioner General John Musinguzi explaining EFRIS system to Traders
By George Bukenya
The Commissioner General of Uganda Revenue Authority (URA), John Musinguzi, met with traders from the Kampala Central Business District to discuss the implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).
This meeting follows concerns from traders about being penalized for not using EFRIS, which they say they do not understand and their income can’t enable them to employ trained personnel.
URA rolled out EFRIS in January 2021 to address tax administration challenges relating to business transactions and the issuance of receipts so as to widen the tax base.
Since then, the authority has been trying to get the business community to adopt the system and Ugandans to get used to demanding fiscal receipts.
Despite the success of rolling it out, reports indicate that some traders who have acquired the Electronic Fiscal Devices or integrated with URA through the system-to-system approach are not fully using EFRIS for transactions.
Mr. Musinguzi demystified the system, emphasizing that it is not a new tax but a technology that simplifies the collection of value-added tax (VAT) and aids traders in proper record-keeping and stock management, as well as issuing e-receipts and e-invoices.
He advised the traders to issue proper receipts to customers if they could not use EFRIS so that URA can collect VAT from the sales.
“Although we will limit ourselves to the enforcement of EFRIS in Kikuubo, it is your obligation and responsibility to remit VAT to URA. So, issue proper receipts bearing addresses, but not cash sales,” Mr. Musinguzi cautioned the traders.
He commended the traders responding to URA’s call noting that it’s through dialogue that issues can be resolved. “Fights and protests cannot bring solutions to the issues raised, but dialogue can,” he said.
A part from not understanding the system, the traders raised concerns about corruption and high-handedness by URA staff. However, Mr. Musinguzi encouraged them to report such cases to the staff compliance division, which was set up to check integrity among staff.
He noted that URA would increase sensitization and education campaigns to enable them to understand EFRIS and other tax matters.
Speaking at the engagement, Dr. Thaddeus Musoke, the Chairman of the Kampala City Traders Association, emphasized the need to ensure a conducive environment for business continuity.
He commended URA for meeting traders whenever issues arise, adding that previous engagements have been beneficial.