Critics of EFRIS are traders who think VAT is part of their revenue, says URA
Ibrahim Bbosa, the authority’s Spokesperson noted that their concern is that VAT is being collected by traders and never remitted.
The Uganda Revenue Authority (URA) has said that protests against systems like EFRIS, aren’t due to their inadequacy, but rather because they are perceived as encroaching on a portion of revenue that people considered theirs.
Ibrahim Bbosa, the authority’s Spokesperson and Assistant Commissioner Public and Corporate Affairs, noted that their concern is that VAT is being collected by traders and never remitted.
Appearing on UBC Good Morning Uganda program, Bbosa revealed that across the region, Uganda has one of the lowest tax burdens.
“Since the initial meeting with the president, where he unequivocally halted all penalties for traders unfamiliar with EFRIS, URA has effectively implemented the directive and withdrawn enforcement from Kikuubo,” said Bbosa.
According to Bbosa, upon physical deployment of operatives in Kikuubo, VAT collection surged by 500% within a month, signalling significant leakage issues hence this necessitated the implementation of EFRIS in downtown.
Joshua Mawerere, the youth leader of Kampala city trader’s association (KACITA), was concerned that after Tuesday’s meeting with the president, traders were left feeling concerned and disappointed.
He said this particularly regarded the evaluation process and the lack of clarity in tax justifications, which were not well addressed by the President.
“What further agitated the traders most was a misrepresentation, where a former member of parliament’s experience was referenced and used as an example of a normal trader,” he said.
While in Kololo the president explained that the traders lack valid reasons to seek the suspension of the Value Added Tax (VAT).
EFRIS is a digital system that facilitates the direct transfer of Value Added Tax (VAT) billing information between businesses and URA.
URA started implementing EFRIS in 2021 to address tax administration challenges relating to business transactions and the issuance of receipts.
The system helps URA assess the right taxes using accurate and authentically generated information. It also enables businesses to thrive with improved record-keeping and monitored stock and sales, among others.
