Police promise security to Traders hoping to open shops

By Ben Musanje

15^th April 2024

Police have explained that the deployment in the city center and its outskirts is due to their uncertainty on the nature of the planned demonstration by the traders in Kampala.

This comes after the traders agreed to close their shops on Tuesday in addition to last week’s demonstration against the implementation of the e-receipting system by the Uganda Revenue Authority (URA) known as Electronic Fiscal Receipting and Invoicing Systems (EFRIS).

The system, initially targeted at manufacturers and later expanded to include supermarkets and larger businesses, was engineered to curb tax evasion by improving the accuracy of recorded transactions and ensuring the matching of input and output tax, thus enhancing the country’s tax-to-GDP ratio.

Luke Owoyesigyire, the Kampala Metropolitan Police Deputy Spokesperson says that they have information indicating that some traders who resolved to close their shops tomorrow have plans of attacking those that are to open.

Owoyesigyire says there are some thugs paid off to attack and robe traders that will open.

Earlier, trader body, Kampala City Traders Association (KACITA) had asked its members to halt the protests after having a meeting with tax body URA and Private Sector Foundation Uganda.

However, a section of traders have expressed concerns over URA’s set threshold of an annual turnover of Shs 150 million for EFRIS enrollment, advocating for an increase to at least Shs 1 billion.

They argue that the current 18% VAT rate, imposed on each trader as the goods move to the next trader or business, amounts to double taxation and this limits their competitiveness in the region especially Kenya, whose VAT is at 16%.

End