Traders In Uganda Close Businesses Over Controversial Tax Invoicing System

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Several traders in Uganda’s capital, Kampala, have closed their businesses on Tuesday in protest at the enforcement of a controversial tax invoicing system, local media reports.

Many business people believe the new system will complicate their operations and result in them paying more taxes, adding that the software is too expensive.

The Electronic Fiscal Receipting and Invoicing System (EFRIS) was launched by the tax agency in January 2021 to track sales and taxes in real time. It has only recently been enforced among small-scale traders, sparking protests.

Last week, traders in Kampala and other major cities held two-day demonstrations against the enforcement of the system.

Uganda’s Revenue Authority has pushed ahead with the system despite traders’ concerns, arguing that its adoption will curb tax evasion and make it easier for businesses to file tax returns.