Ugandan Traders Shut Down Businesses in Protest Against New Tax System

Kampala, Uganda - Several traders in Uganda’s capital, Kampala, closed their businesses on Tuesday to protest the enforcement of a new tax invoicing system that they argue will complicate their operations and increase their tax burden. The system, known as the Electronic Fiscal Receipting and Invoicing System (EFRIS), was introduced by the Uganda Revenue Authority in January 2021 to monitor sales and taxes in real-time.

The enforcement of EFRIS among small-scale traders has been met with significant resistance, culminating in widespread protests. Last week, business owners in Kampala and other major cities across the country staged a two-day demonstration against the new system. Many traders have expressed concerns that the software required for EFRIS is too costly and that its implementation is forcing them to pay more taxes than before.

Despite these protests, the Uganda Revenue Authority is continuing to implement the system. The agency argues that EFRIS will help curb tax evasion and simplify the process for businesses to file tax returns. This move is part of broader efforts by the government to improve tax compliance and increase revenue, but it has clearly met with significant opposition from the local business community.

As the standoff between traders and tax authorities continues, the impact on local businesses and the overall economy remains a significant concern for both sides.