City traders call off strike after govt’s written assurance

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Kampala City Traders Association (KACITA) has called off its strike after Prime Minister Robinah Nabbanja reportedly gave a written assurance on Thursday, August 1, that the government will address their issues.

“We delivered her letter to the traders Thursday evening and they resolved to resume operations on Friday, August 2,” Thadeus Musoke, the KACITA chairperson, told New Vision.

“We wanted evidence that the President is committed to addressing our issues, which we got through the Prime Minister. The President is going to meet the traders soon,” he stated.

Musoke also said the meeting, which was held at the Office of the Prime Minister in Kampala, was also attended by their landlords, security chiefs, the Attorney General, and the executive director of Kampala Capital City Authority, Dorothy Kisaka, among others.

On July 31, 2024, the traders began their strike against the Electronic Fiscal Receipting and Invoicing System (EFRIS), ‘unfair’ tax assessments, high taxes and the penetration of foreign traders in their business, among others.

The strike saw a majority of shops in downtown Kampala closed. 

“Our problems include EFRIS, standard valuation, unfair taxes and the foreign traders, among others,” Musoke reiterated via phone. 

On May 14, 2024, President Yoweri Museveni upheld the use of EFRIS by traders, citing its importance to business transparency.

“We should allow flexibility on the EFRIS machine; those who cannot afford to buy it should be allowed to use the smartphone option. I, therefore, direct the URA [Uganda Revenue Authority] not to insist on the EFRIS machine,” he said.

He said this while addressing the traders at the Kololo Ceremonial Grounds in Kampala.

“The people who cannot buy it should be allowed to use the cheaper option, and there should be no penalties for not buying it,” the President added.

Finance ministry permanent secretary Ramathan Ggoobi has been saying that EFRIS levels the tax-paying ground.

“Several people have been evading taxes, but EFRIS levels the ground,” Ggoobi, who is also Uganda’s Secretary to the Treasury, said on May 30, 2024, during a morning talk show on one of the local television stations in Kampala.

Ggoobi explained that EFRIS is not a tax, but a system that they have brought so that those paying taxes are not disadvantaged by those not paying taxes.

“People were saying that EFRIS machines are expensive, but we told them the initial payment (tax) is not to be deducted. You can even have the EFRIS app on your smartphone,” he said.

In May last year, URA Commissioner General John Musinguzi said their register had about 3.2 million taxpayers.

“Whereas we could be having nine million potential taxpayers, our register now has about 3.2 million people, but it’s an increase from about 1.5 million taxpayers that we had two years ago,” he said.

Musinguzi said he looks forward to the time when Uganda’s budget will be fully supported by the taxes collected internally.