Efris was rushed, says UMA  

Manufacturers have blamed Uganda Revenue Authority (URA) for causing a trade impasse, resulting from the rushed implementation of the Electronic Fiscal Receipting and Invoicing System (Efris). 

Speaking during a press briefing in Kampala at the weekend, Mr Deo J.B Kayemba, the Uganda Manufacturers Association chairperson, said whereas they are not against digital solutions and widening the tax base, rushing to implement a complicated system such as Efris without corresponding sensitisation and unrealistic penalties on non-compliant traders, had caused an unnecessary impasse that has caused losses for both government and traders. 

“It widens the tax base, formalises and reduces non-compliance so that everyone can contribute their fair share of taxes. Efris also digitises the economy, which is a critical factor in development. Additionally, the same system has been adopted across the region and working well. Therefore, we cannot work in isolation,” he said, noting that, however, challenges had originated at the implementation stage with the main contestation being low sensitization and high handedness.

“Penalties under Efris are next to impossible. There is also high-handedness yet the implementation still has some challenges that must be addressed on both sides - the taxpayers and URA. Irrespective of value and turnover of the taxpayer, each invoice [of a non-compliant] trader attracts Shs6m,” he said. 

Traders last week closed their shops from Monday to Friday, protesting URA’s introduction of heavy penalties for those found guilty of alleged failure to issue e-receipts. 

Traders also accused URA, together with enforcement security forces, of holding and sometimes arresting customers who fail to produce e-receipts for purchased merchandise. Mr Kayemba also noted that the business community was facing several tax-related issues, many of which have created a challenging environment, stifled business expansion and innovation, and forced many to close. 

Traders have highlighted the cost related to the implementation of Efris as a challenge, in which they are required to spend on equipment to issue e-receipts and regular expenditure on data given that the system runs on the internet. 

At the weekend UMA noted that the need to improve tax collections had prompted URA to roll out systems, many of which don’t give taxpayers enough time and sensitisation to effectively implement them. 

URA has previously said that digitisation of the tax system is a key strategy that will ensure that the business operating environment is well-leveled. 

Efris is among the digital solutions that seek to ensure value-added tax accountability, through creating a back-end system that is accessed by both traders and URA. 

However, traders say Efris has significant implementation costs given that it requires contemporary technological tools such as laptops or smartphones, printing papers, and the internent to operate it. 

Such costs, they say, have created a strain on their businesses, and stifled their ability to expand, while others have had to close due to inability to meet the new requirement. 

Therefore, Mr Kiyemba said government should sensitise traders, while at the same time, the Ministry of Finance should drop Efris-related penalties.  

At the weekend President Museveni suspended all Efris-related penalties instituted on traders and their businesses to create room for more consultation. 

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