The leaders of traders’ associations have threatened to lock down their businesses again, displeased with the outcome of the Kololo meeting with President Museveni.
They argue that President Museveni did not address any of their concerns about taxes at the much-anticipated meeting.
However, the Uganda Revenue Authority spokesperson, Ibrahim Bbosa, urged the traders to have a sit-down with URA for clarification on the functionality of the Electronic Fiscal Receipting and Invoicing solution, EFRIS.
Traders concerns
The traders voiced multiple concerns, such as the need to suspend EFRIS and the need to increase the annual turnover threshold for enrollment from Shs150 million to at least Shs1bn as some of the reasons for the protest.
They also argued that the current 18% VAT, applied repeatedly throughout transactions, results in double taxation, diminishing their competitiveness especially relative to Kenya, where the VAT is set at 16%.
Traders have also contested, the import duty rates on textiles and garments, currently standing at 3.0 and 3.5 USD per kilogramme respectively, as very high.
They argue that these rates not only inflate business costs but also foster smuggling, leading to numerous uncleared containers at customs.
They also criticize the URA’s inconsistent valuation guidelines for imported and exported goods, which they say impede effective business planning and put them at a disadvantage compared to their regional peers.
In addition, traders also raised issues about the alleged unprofessional behaviour of URA enforcement officers and the steep interest rates, ranging from 17-36%, imposed on local businesses.
These conditions, traders claim, contrast with the more favourable terms offered to foreign competitors, notably Chinese companies, who benefit from lower credit rates and additional business incentives. (Additional reporting by ntv& independent)
