Iganga shops closed as traders join countrywide protest against URA’s EFRIS

Iganga, (UG):- Traders in the Eastern town of Iganga Tuesday joined their counterparts across the country to show dissatisfaction with what they termed as government’s neglect of their concerns regarding the introduction of the Electronic Fiscal Receipting and Invoicing System (EFRIS).

EFRIS is an initiative introduced by the Uganda Revenue Authority under its domestic revenue mobilisation programme to address the tax administration challenges relating to business transactions and issuance of receipts.

One of the traders, Mr. Mukova Sayid, who operates along Saza Road in Iganga Municipality, said they decided to join other traders in other parts of the country since the new tax has not been sensitized about its benefits and disadvantages.

Mukova said URA would have first taken the initiative to sensitize traders about the way in which the system operates before imposing it. He adds that the system which he said was imported from another country needed to first sink in terms of sensitization before implementing it.

“Under this system, one needs to have the system known as EFRIS in order to pay taxes to revenue yet most of us traders are low income earners. Not everyone is happy with this new tax because it’s hurting us,” Mr. Mukova said.

Consumers who had moved from other parts of Busoga sub-region to buy goods were shocked to discover that all shops in the busy business centre had not opened at all. The business town attracts a large number of traders from neighboring districts who flock to the area seeking to buy goods during morning hours.

Traders told DailyExpress that under this new EFRIS system, buyers are entitled to receive a receipt for the purchase of goods worth Shs450,000 and above and failure to do so attracts a fine of Shs5million.

“In case one is found with goods without a receipt a trader is charged shillings 50 million which is too high,” Mukova said.

As the traders were going on with their protest which was on Monday declared by the Kampala City Traders Association to take effect countrywide, some of the traders were seen on streets around Iganga central market, holding placards on which they sent their message to whoever it might concern showing their contest to the EFRIS.

They urged President Yoweri Kaguta Museveni to intervene in the matter to save them from what they termed as abnormal taxes.

Heavily armed police were deployed on all major streets within Iganga Municipality and its surrounding areas to contain any violence that would occur as a result of the strike. The strike by traders also affected taxi operators since most taxis were left abandoned without passengers.

The chairman Iganga Taxi Operators and Driver’s Association (ITODA), Mr. Abdallah Waibi, said some of the operators were forced to return back to their respective homes as a result of lack of passengers.

He said most of their passengers who always flock the area from other districts to buy goods didn’t turn up as a result of the strike and some traders were seen trying to block their colleagues who tried to open their premises.

Meanwhile, Busoga East Police spokesperson SSP Diana Nandawula, said police were deployed along the streets of Iganga to contain any violence that was likely to occur as a result of the strike.

We have understood that not all places in town adhered to KACITA declaration and tight business closure was observed along Aso Street, Saza Road, Oboja Drive, Ngobi Road, Wagoina Road and along the highway, however, some traders in some other parts of the town were seen operating businesses normally.

It should be noted that KACITA have since set five concerns which need to be addressed by the government and these include; the EFRIS system to go back to manufacturers and gig suppliers, not small businesses, violation of trade orders where manufacturers end up wholesaling and retailing to the end users especially Chinese and impractical 3.0 and 3.5 USD/KG import duty on garments and textiles saying they want 25% import duty on these items.

Others are, high import values making it hard for traders to clear their goods and the high cost of living where most of the essential goods are becoming unaffordable to the common man.