Speaker Among slams URA over electronic receipting system as traders protest

The Speaker of Parliament, Ms Anita Among during plenary

What you need to know:

  • While updating Parliament on government’s intervention to address traders’ outcries, Mr Lugoloobi said “URA shall continue to implement the EFRIS; however, emphasis shall be placed on sensitization.”
  • To address the elements of brutality and forceful enforcement of the system, the minister noted that “URA shall exercise more sensitivity in the enforcement of EFRIS” by restraining from the issuance and enforcement of penalties for non-compliant traders.

The Speaker of Parliament, Ms Anita Among has raised concerns about the implementation and enforcement of Electronic Fiscal Receipting and Invoicing Solutions (EFRIS) by Uganda Revenue Authority (URA), emphasizing that there is need to educate traders about the system before resorting to the current mandatory enforcement.

Reacting to the statement presented by the state minister of finance, Mr Amos Lugoloobi in Parliament today, Ms Among noted that the tax body seems to have neglected the key issues raised by the taxpayers, shifting its effort to maximizing taxes through brutal enforcement of the system without addressing the traders’ concerns.

“Some people even don’t know what they are paying for, they don’t know how much they are paying for taxes and again you want me to pay taxes, you also want me to buy a [EFRIS] machine to install in my shop. The machine is Shs2.5 million. I install it there and then I am the same person paying taxes and there are places which even have no network. There are some serious issues that we need to handle as government,” Ms Among said.

“There's need for regular consultations and education between URA and taxpayers, so as to improve on the understanding because there is a lot of uncertainty on the kind of taxes that are being paid. You don’t have to beat or brutalize anybody to collect money. Trust in this government will be lost and yet at the same time we expect to get money from these people,” she added.
The Speaker’s concerns followed the Wednesday resolution by the ministry of finance insisting on the implementation of EFRIS system after traders in Uganda’s capital, Kampala closed their shops protesting the system and unfair taxes.

While updating Parliament on government’s intervention to address traders’ outcries, Mr Lugoloobi said “URA shall continue to implement the EFRIS; however, emphasis shall be placed on sensitization.”
To address the elements of brutality and forceful enforcement of the system, the minister noted that “URA shall exercise more sensitivity in the enforcement of EFRIS” by restraining from the issuance and enforcement of penalties for non-compliant traders.
“The Commissioner General of URA shall submit the list of traders currently having outstanding EFRIS penalties, for Hon. Minister's Consideration for possible waiver in accordance with the law,” Mr Lugoloobi said.

MPs react……………                                             
Hope Grania Nakazibwe, Woman MP, Mubende.
“They [URA] agreed to set up an office in Kikuubo [Kampala] to assist traders about EFRIS system but the minister have to know that traders are all over Uganda and they all need these issues sorted.”

Lulume Bayigga, Buikwe South MP
“The cost of implementing EFRIS is high; a trader told me that to implement the system, you need a machine which costs above Shs1.9m, you also need a computer, software, internet and someone to operate it and it all comes with a cost, making it hard to implement the system.”

Allan Mayanja, Nakaseke Central MP
“It is unfair for the minister to report that they agreed with the traders to continue the implementation of the EFRIS system, the traders are saying that EFRIS should be stopped for some time as the ministry officials reorganize themselves.”