Kampala, Uganda – Several merchants in Uganda’s capital, Kampala, closed their companies on Tuesday to protest the enforcement of a brand new tax invoicing system that they argue will complicate their operations and improve their tax burden. The system, often known as the Electronic Fiscal Receipting and Invoicing System (EFRIS), was launched by the Uganda Revenue Authority in January 2021 to observe gross sales and taxes in real-time.
The enforcement of EFRIS amongst small-scale merchants has been met with vital resistance, culminating in widespread protests. Last week, enterprise homeowners in Kampala and different main cities throughout the nation staged a two-day demonstration towards the brand new system. Many merchants have expressed considerations that the software program required for EFRIS is simply too expensive and that its implementation is forcing them to pay extra taxes than earlier than.
Despite these protests, the Uganda Revenue Authority is continuous to implement the system. The company argues that EFRIS will assist curb tax evasion and simplify the method for companies to file tax returns. This transfer is a part of broader efforts by the federal government to enhance tax compliance and improve income, nevertheless it has clearly met with vital opposition from the native enterprise neighborhood.
As the standoff between merchants and tax authorities continues, the affect on native companies and the general financial system stays a major concern for each side.
https://www.africanexponent.com/ugandan-traders-shut-down-businesses-in-protest-against-new-tax-system/
