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 TRADERS' STRIKE 

President Yoweri Museveni says he has asked the striking traders to "give me time to research more and consult the technocrats on all the concerns they raised" during their much-anticipated meeting at State House Entebbe on Friday.

"I will then meet them all on May 7, 2024, at Kololo to discuss further," the President said in a post on social media platform X.

"In the meantime, I have directed that URA (Uganda Revenue Authority) refrain from issuing penalties and recovering any penalties that have already been issued, but taxpayers must continue to pay their taxes as usual.

"It is good they have agreed to open up their businesses as we continue to find solutions to the issues raised," said Museveni.

Friday's eagerly awaited meeting followed traders' protests against the use of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) in paying value added tax (VAT) to Uganda Revenue Authority (URA), among other concerns.

In recent days, the traders had left their shops shut in Kampala's central business district and in other districts across the country.

They accused URA of being high-handed in enforcing the use of EFRIS, which was rolled out in 2021 to enhance business efficiency, reduce the burdens of compliance, as well as usher in a new era of meticulous record-keeping.

At State House, John Kabanda, the leader of the Federation of Uganda's Traders Associations (FUTA) and Dr Thadeus Agenda Musoke, the leader of Kampala City Traders Association (KACITA) led a delegation of 61 leaders for their meeting with the President.

"The discussions mainly centred on the taxation levied on their business, especially the EFRIS system," a statement from the President's press team said.

"During the meeting, the President informed the traders that he will meet the technocrats from the Ministry of Finance, Planning and Economic Development and URA on April 24, 2024 for wider consultations.

"The leaders of the traders agreed to reopen their businesses as they continue to consult further with the government," the statement added.

▪️  Government to waive penalties on EFRIS

Pedestrians walk past closed shops along Luwum Street in Uganda's capital Kampala during the ongoing traders' strike, on April 16, 2024. (Credit: Mpalanyi Ssentongo)

Traders' demands

Museveni said he has "listened" to the traders' issues and he will need more time to research and consult with technical teams mid-next week.

Some of the traders' demands include suspending EFRIS and its related enforcement operations in Kampala as URA continues to sensitize them.

They also want foreign investors to be directed to return to their factories.

Traders also want a reduction in tax values. They are also asking Government to raise the VAT threshold from sh150 million to at least sh1 billion.

They also want the income tax bracket raised up to sh150 million and the  import duty tax of levying $3.5 (13,380) per kilogramme on textile garments dropped.

They also want standardization of tax values for both imported and exported goods, as well as reduction of interest rates to enable them compete favourably with foreign counterparts in the market.

Earlier in April, security was heightened in Kampala when traders announced that they would go on strike. (Credit: Patrick Kibirango)

During the meeting with the leaders of traders, Museveni said they should answer the question: 

"Do we want to build our country Uganda or other countries by trading in goods produced by them? 

"Must we continue to cause a hemorrhage of the little that we have made through agriculture and other sectors by sending our money outside?"

He added: "Uganda should not be a supermarket for other countries."

Earlier on Thursday, the Government announced that it is in advanced stages of tabling the Competition Act regulations.

Trade state ministry told MPs that the regulations will streamline business practices believed to be the root cause of the ongoing traders' strike.

The law seeks to regulate joint ventures, acquisitions and mergers, which in Uganda's case are usually vertical and horizontal in nature.