URA has come out to defend its stance on the use of EFRIS to enhance revenue compliance despite a protest by traders who locked their shops. URA has dispelled propagated public misconceptions that EFRIS is a new tax policy.
The Uganda Revenue Authority (URA) has lashed out at the EFRIS system which has led many to close their shops and protest against the system thinking it is a new tax
In 2020, URA launched the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) with the aim of tracking and collecting VAT from traders. However, the policy, which started in the factories, once reached the traders and caused immense panic which was followed by a shop closure strike.
URA spokesperson Bbosa Ibrahim Kibuuka said traders have been misled by selfish people who have come to think that EFRIS is a new tax which is not true.
He said that since they took EFRIS to the traders they have tried to educate them about its operation and encourage them to use it but as it is the new system some of them are not familiar with it. He said the system not only helps the government to collect taxes but also helps businesses to pay taxes.
The EFRIS system only applies to VAT-paying businesses that must have sales of more than Rw 150 million a year. However, URA said it was surprised to see small businesses also participating in the traders’ strike.
Bbossa said some traders have been collecting VAT from customers but it does not reach URA.
He said in just two months they have been in the street the VAT collected has increased by 500 per cent which means that many traders have been reluctant to pay.
However, URA says it will look into complaints from traders who allege that EFRIS enforcers are using too much cruelty against people which is wrong.
Bbossa said in this regard they will continue to engage with the trade unions, especially those that are most active and educated and they will put their efforts into the street to restore order.
