China Town: URA enforces EFRIS compliance at super store

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In a move aimed at boosting revenue collection and streamlining tax compliance, the Uganda Revenue Authority (URA) has enrolled China Town Super Store, a major business hub in Kampala, onto the Electronic Filing and Payment Registration System (EFRIS).

On Tuesday, September 5, 2024, anxious customers were left stranded when China Town Super Store was closed over insecurity concerns following a US terror alert to Uganda and failure to comply with the tax body's provisions.

China Town customers overwhelmed the premises at Lugogo looking for cheaper items to buy. This alerted URA officials to guard against the exploitation of local businessmen operating under the Kampala City Traders Association (KACITA) especially those in Kikuubo and St Balikuddembe Market aka Owino.

According to Bernard Kasoma, the URA manager for EFRIS, they have unleashed a 13-person team to train China Town staff for the next five days to be able to assist with any technical support regarding EFRIS management.

This marks a significant milestone in URA's efforts to bring all major taxpaying entities onto the digital platform. EFRIS, launched in 2020, allows taxpayers to file returns, make payments, and access their tax records online.

Bernard Kasoma the URA manager for EFRIS showing an invoice receipt captured by China Town on Thursday. (Photo by Isaac Nuwagaba)

No tax exemption

“URA did not give tax exemptions like what some traders on social media were trending. This is not true. We want China Town to track their stock using the EFRIS system and help them fight unscrupulous dealings, especially by their staff,” he said.

Every product shall be put on the stock list to help the management track details of their merchandise and guard against losses.

China Town replaces the former Game Mall, which collapsed a few years ago setting the pace of how modern shopping malls are managed.

The hub, according to KACITA chairperson Thaddeus Musoke, has long been a source of concern for tax authorities, with many businesses in Kikuubo accusing China Town of underreporting income or evading taxes altogether to make profits at the expense of local traders.

KACITA excited by the development

“We are thrilled to have China Town on board. This enrollment will not only improve tax compliance but also reduce the risk of tax evasion and increase revenue collection," Musoke said.

The enrollment process involved training China Town's business owners and managers on how to use the EFRIS platform. URA officials also conducted a thorough registration exercise, capturing details of all businesses operating within the hub.

“We are committed to supporting URA in its efforts to improve tax compliance,” China Town sales manager Meshach Masingano said.

"We believe that this move will not only benefit the Government but also our businesses, which will now be able to operate with greater transparency and efficiency."

Customers at China Town Super Store in Lugogo Kampala fighting with security to enter for shopping. (Photo by Isaac Nuwagaba)

Leveraging technology in tax compliance

The enrolment of China Town onto EFRIS is part of URA's broader strategy to leverage technology in tax administration. The authority has set a target of increasing revenue collection by 20% in the next financial year and believes that EFRIS will play a critical role in achieving this goal.

“EFRIS has already shown tremendous potential in improving tax compliance and reducing the cost of doing business," Kasoma said, adding: "We are confident that the enrollment of China Town will further boost our efforts to modernize tax administration in Uganda".

As URA continues to enrol more businesses onto EFRIS, the authority is also exploring other innovations to improve tax compliance. These include the use of data analytics and artificial intelligence to detect and prevent tax evasion.

“We are committed to using all available tools and technologies to improve tax administration in Uganda," added Kasoma.

“We believe that this will not only benefit the government but also the business community, which will be able to operate in a more transparent and efficient environment."

The enrollment of China Town onto EFRIS is a significant step forward in URA's efforts to modernize tax administration in Uganda. As the authority continues to leverage technology to improve tax compliance, businesses and individuals can expect a more streamlined and efficient tax filing process.