URA hits back at EFRIS critics, says protesters are traders who consider VAT as personal revenue

KAMPALA, UGANDA – The Uganda Revenue Authority (URA) has fired back at critics of the Electronic Fiscal Receipting and Invoicing System (EFRIS), saying that protests against the system are driven by traders who consider Value Added Tax (VAT) as part of their personal revenue.

According to Ibrahim Bbosa, URA’s Assistant Commissioner for Public and Corporate Affairs, the authority has implemented EFRIS to address tax administration challenges and ensure accurate tax collection. Bbosa noted that some traders have been collecting VAT but failing to remit it to the government, and that EFRIS is designed to prevent this leakage.

“EFRIS is not inadequate, but rather, it’s perceived as encroaching on a portion of revenue that people considered theirs,” Bbosa said during an appearance on UBC’s Good Morning Uganda program. “We’ve seen a 500% surge in VAT collection in Kikuubo since we deployed operatives there, which shows significant leakage issues.”

Bbosa also pointed out that Uganda has one of the lowest tax burdens in the region, and that EFRIS is designed to support businesses with improved record-keeping and monitoring of stock and sales.

However, traders have expressed concerns about the implementation of EFRIS, citing issues with the evaluation process and lack of clarity in tax justifications. Joshua Mawerere, the youth leader of the Kampala City Traders Association (KACITA), said that traders were left feeling concerned and disappointed after a meeting with President Museveni, who maintained that EFRIS is necessary to prevent tax evasion.

The controversy surrounding EFRIS has sparked a heated debate about tax administration and revenue collection in Uganda. While URA maintains that EFRIS is necessary to prevent tax leakage, traders argue that the system is burdensome and unclear. The issue is likely to continue to be a point of contention in the coming weeks and months.