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KAMPALA - Ramathan Ggoobi, the finance ministry's permanent secretary and secretary to Uganda's treasury, has underlined that the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) is "here to stay".

The system was introduced by the Uganda Revenue Authority (URA) to enable compliance as well as improve efficiency for e-invoicing and VAT reporting of commercial transactions.

Basically, it involves using electronic fiscal devices (EFDs), e-invoicing or even direct communication with business transaction systems to manage the issuance of e-receipts and e-invoices in accordance with the Tax Procedures Code Act of 2014.

On Friday, Ggoobi said that the government will crack down on anyone who evades taxes, including traders who are on strike over EFRIS, emphasizing that the system will remain intact.

He was speaking during the Quarter 4 press briefing in Kampala.

At the beginning of this week, traders in Kampala went on strike seeking President Yoweri Museveni's attention on pertinent issues involving their businesses, including the divisive EFRIS as well as foreign investors.

On Tuesday, traders in Masaka city followed suit and kept their businesses shut in solidarity with their Kampala counterparts.

A section of the traders have since temporarily called off the strike following intervention and assurances from their leaders.

'Like a CCTV camera'

In Kampala, PS Ggoobi told reporters that he was asked by President Museveni to meet and address grievances of the striking traders. However, he added, it was discovered that most traders were referring to EFRIS as a new tax — which is not the case.

He said that some traders are against the system because they are used to evading taxes.

"The system is like a CCTV camera watching you. Once you enter the room, the camera is hovering over your head. You say 'I don't want that camera'. What do you want to do in that room?" he said.

"So this is the EFRIS. It looks at the supply side and the demand side of the entire ecosystem of a transaction. Therefore, I would like to encourage all of us to know that EFRIS has come and EFRIS is going to stay.

Ggoobi promised traders that he will address the issue of foreigners reportedly involved in retail business and manufacturers who sell directly to consumers.