By Our Reporter
NATIONAL
The Forum for Democratic Change (FDC) Party has come out in support of the current strike by traders against EFRIS, (Electronic Fiscal Receipting and Invoicing System).
In a press briefing today, 15th April, 2024, the FDC Party President, Patrick Amuriat Oboi says FDC is concerned with the plight of traders and businessmen who are operating in a harsh environment, forcing many to collapse.
FDC says the system was hurriedly enforced without sensitizing stakeholders; such that they appreciate it and that there is lack of requisite infrastructure to use the system.
“Traders are not fully aware of its significance, the specific businesses required to enroll, the variety of taxes due, and the potential opportunities that lie ahead,” FDC says adding that it has led to traders’ frustration with the EFRIS system, greatly affecting their businesses.
“We have established that EFRIS exposes traders to a heavier tax burden, including previously hidden taxes like withholding tax, income tax, and VAT,” says Amuriat.
FDC also claims that records show that over 200,000 people are closing their businesses due to EFRIS, resulting in a shortfall in tax collection every day.
The Uganda Revenue Authority (URA) developed the EFRIS (Electronic Fiscal Receipting and Invoicing System) for e-Invoicing and VAT reporting of commercial transactions as per Sections 73A and 73B of the Tax Procedures Code Act 2014, supporting the implementation of EFRIS. URA launched this system on January 1st, 2021.
All companies registered in Uganda were directed to use the EFRIS platform to report electronically issued invoices and cash receipts to the URA. Under this system, organizations and companies operating in the Ugandan market must submit their electronic sales invoices to the URA, and the URA must approve the invoice before the company can transmit it to its client.
According to URA, the implementation of the EFRIS system aims to tackle tax evasion and the fraudulent practice of false invoices for fake purchases.
“We believe the majority of businesses operating in Uganda are under informal arrangements. The financial burdens imposed by EFRIS on small businesses only serve to kill these enterprises,” FDC says.
The opposition party also says there are deeper grievances fueling the protests beyond the initial discontent with EFRIS.
“The FDC supports the traders’ protests in the form of sit-down strikes and lockdowns, ongoing to put pressure on the Government to address the traders’ plight,” Amuriat said.
The FDC calls upon the Government and URA to engage stakeholders so that the plight of traders and businessmen is attended to.
“Despite the elaborate and harsh tax enforcement mechanism put in place by the Government, which has increased the tax base where URA annually collects 31 trillion from Ugandans, FDC is concerned with the indiscipline in borrowing. We cannot service such loans, and we are also concerned with the wastage of taxpayers’ money. If the money collected from Ugandans was put to better use, Uganda would be a better country to live in.” The statement reads.
