Museveni Suspends URA Penalties as Traders Agree to Reopen Business Amid EFRIS Protest

President Museveni has issued a directive for the immediate suspension of the Uganda Revenue Authority's Electronic Fiscal Receipting and Invoicing Solution (EFRIS) implementation, along with all associated penalties following his meeting with traders.

This decision aims to facilitate broader consultations regarding their implementation status.
Following talks at State House Entebbe on Friday, April 19, 2024, with the leaders of traders in Kampala and upcountry districts, the President made this statement. The conversation mostly focused on the taxes that their companies were assessed, particularly the EFRIS system. 

The meeting came about as a result of a walkout by traders who shut down their establishments to protest the Uganda Revenue Authority's (URA) adoption of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).

I met the leaders of traders from Kampala and other districts at Entebbe.

I listened to their issues, which included:

1. The tax on textiles calculated based on kilograms is high.
2. Manufacturers who engage in wholesale and retail leave no room for traders to do business,… — Yoweri K Museveni (@KagutaMuseveni) April 19, 2024

During the meeting, the President informed the traders that he will meet the technocrats from the Ministry of Finance, Planning and Economic Development and URA on the 24th, of April 2024 for wider consultations.

The President further stated that on May 7, 2024, at Kololo Ceremonial Grounds, he will meet with every trader. "I have requested time from the traders to conduct additional research and confer with the technocrats regarding all the issues they brought up. Then, on May 7, 2024, I will meet with them all at Kololo to continue our conversation," stated Museveni. 

In order to allow for more extensive talks, President Museveni further ordered that the URA postpone any penalties. As a result, the leaders of the merchants consented to reopen their companies while they carried out more meetings with the government. 

“In the meantime, I have directed that URA refrain from issuing penalties and recovering any penalties that have already been issued, but taxpayers must continue to pay their taxes as usual. It is good they have agreed to open up their businesses as we continue to find solutions to the issues raised,” he said.

Mr. Kabanda John, the head of the Federation of Uganda's Traders Associations (FUTA), and Dr. Musoke Thadeus Nagenda, the head of the Kampala City Traders Association (KACITA), led the group of 61 leaders at the meeting.