Masaka traders join as strike against new URA tax system enters day two

Several shops in Masaka City Tuesday remained closed as the traders’ strike against Uganda Revenue Authority (URA)’s tax system entered day two.

In a strike started in Kampala, traders are against the Electronic Fiscal Receipting and Invoicing Solutions (EFRIS), a system which seeks to capture the exact sales and mandate them to pay taxes to the tax body,  

In Masaka City, shops along major streets like Horbert, Buddu and part of Elgin were affected by the strike on Tuesday but business along streets like Edward, Victoria, and Masaka’s Kikuubo lane, which have a concentration of garment dealers, continued uninterrupted.

The affected streets have a concentration of wholesale businesses and agro inputs.

Kurayish Kaiza, a wholesaler in Masaka City, claimed many traders have abandoned their shops due to URA’s unfair taxation regime leading to losses.

“About 13 wholesalers along Elgin Street have closed their shops in six months after making losses due unprecedented penalties imposed on them by URA,” he alleged.

Masaka City Traders Association (MACITA) spokesperson Joachim Kizito said “the strike will go on until they get an official communication from the government.”

Kizito noted that unlike the old systems of taxation, EFRIS makes it a must for the trader   to have digital skills yet most of them are school dropouts struggling to make ends meet.

“Imagine URA came up with a standard penalty of Shs6, 000,000 on any business owner who fails to embrace EFRIS, is that fair?” he asked.  

He also complained about Chinese investors who have opted to sell goods directly to final consumers, breaking the original chain of distribution of goods where wholesalers are involved.

“We have on different occasions complained to authorities about Chinese exploiters who masquerade as investors and explained to government how they affect our businesses, but they have turned a deaf ear, we are only left with one option- strike… We hope they will this time round listen and act,’’ he added.

On Sunday, URA commissioner general John Musinguzi told Monitor that they had engaged traders on how EFRIS works and its benefits.

About EFRIS

Under EFRIS, URA targets businesses with an annual turnover of at least Shs150million to register so that their sales and applicable tax obligations are monitored by URA in real time through a computer to computer system interface.

Meanwhile, Masaka City Traders Association was formed in 2022 as an umbrella body   to fight for the rights of traders in the area. It currently has a total of 219 registered members.