Museveni Addresses Traders’ Taxation Concerns and Advocates for Local Production

President Yoweri Museveni. PHOTO/FILE
By BUSIINGE AGGREY
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Briefly:


  • President Museveni refutes claims of excessive taxation by traders in Uganda, citing deliberate tax policies that support local growth. He emphasizes the government’s efforts to facilitate trade and urges a shift towards local production. Stakeholders discuss concerns over taxation and the implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) during a meeting at Kololo Ceremonial Grounds.

President Yoweri Kaguta Museveni contested the claim put forth by certain traders alleging that Uganda imposes an excessive tax burden on them.

“Assertions of an overbearing tax regime in Uganda lack merit, and I’m here to engage with you on this matter,” he declared. The President made these comments on Tuesday during a gathering with traders from Kampala and various districts at Kololo Ceremonial Grounds. President Museveni’s discussion with the traders follows protests regarding what they perceive as unjust taxation by the Uganda Revenue Authority (URA) and the perceived uneven application of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).

EFRIS, a system instituted by the URA, aims to enhance compliance by monitoring invoices and receipts issued by specified taxpayers in Uganda. According to the President, the government’s tax strategy is deliberate, preserving what “nurtures Uganda’s growth” while imposing reduced taxes where appropriate. “Upon assuming office, export taxes on coffee and other products were eliminated. Currently, there are no taxes on exports from Uganda, nor are there individual taxes. The focus is on facilitating internal trade without imposing excessive charges,” he stressed.

President Museveni clarified that import duties solely pertain to goods brought into Uganda, urging traders to contemplate local manufacturing and exporting for optimal business outcomes.

“There exist various types of traders—those promoting local products, exporters, and importers. Domestic traders, distributors, and exporters either benefit from tax exemptions or face minimal tax obligations. Importers are taxed based on the nature of their imports,” he elucidated. He encouraged traders to transition from importing to local production, citing successful instances in sectors like dairy, where local value addition has flourished. The President also addressed concerns about double taxation, asserting that the tax system aims to prevent redundancy and protect local industries. Regarding EFRIS, he urged stakeholders to address concerns regarding its effectiveness and fairness, emphasizing the necessity for constructive dialogue. Minister for Kampala Capital City and Metropolitan Affairs, Hajjat Minsa Kabanda, expressed appreciation to President Museveni for engaging with the traders and pledged their readiness to adhere to tax regulations once sensitized. Kampala City Traders Association (KACITA) Chairperson, Dr. Thadeus Musoke Nagenda, welcomed the opportunity to tackle challenges encountered by traders and emphasized the need for inclusive decision-making platforms. Federation of Uganda’s Traders Associations (FUTA) Chairperson, Mr. John Kabanda, echoed concerns about high taxes and advocated for annual consultations with the President to address business-related matters. United Arcade Traders Entrepreneurs Association (UATEA) Chairperson, Mr. Edward Ntale, expressed willingness to participate in local industrialization efforts but pointed out existing barriers to entry. KACITA Spokesperson, Mr. Issa Ssekito, raised concerns about the absence of an appeal mechanism in EFRIS, stressing the importance of a fair and transparent tax system. The meeting also saw the presence of Prime Minister, Rt.Hon. Robinah Nabbanja, Commissioner General of URA, Mr. John Musinguzi, and other government officials.

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