The Ministry of Finance, Planning and Economic development, has in the next two weeks, undertook to consult and study the grievances within the business community in Uganda, as a measure to restore calm following traders protests against the harsh business environment in the country.
On Tuesday, traders in Uganda’s major cities closed shops, causing a paralysis in businesses not only in the central business district but also in other cities across the country.
A Crisis meeting with officials from the trade ministry, representatives was convened in Kampala where traders tabled their concerns including; high import duty charged on textiles by Uganda Revenue Authority, high costs of compliance to EFRIS system, high VAT rates for Uganda, lack of standardized values for goods, and anti-Competition practices by some manufacturers.
Regarding the Anti-Competition practices by manufacturers, traders protested unfair competition arguing that some foreign investors are participating in distribution, wholesale and hawking of their products resulting in undercutting of prices thus low sales for the Ugandan traders.
As a condition to re-open businesses, the traders proposed that government should suspend enforcement of EFRIS system, consider increasing VAT threshold from 150million to (one) 1 Billion, and reduction of VAT rates from 18% to 16%. The traders also demanded that URA should provide valuation methods which are consistent international protocols.
In a statement released on 16th April 2024, the Ministry of Finance notes that the parties agreed to undertake studies as well as consultations and submit the findings on the matter in two weeks.
According to finance minister Hon Matia Kassaija, it was also agreed that URA shall continue to implement the EFRIS however emphasis shall be on sensitization and handholding of the taxpayers to appreciate the digital system. To achieve this, URA shall with immediate effect establish a shop in Kikuubo, solely to provide support services to traders and other taxpayers on EFRIS use.
Kassaija states, it was also agreed that URA shall exercise more sensitivity in enforcement of EFRIS, and the Commissioner General for URA shall released a list of all traders with outstanding EFRIS penalties for a possible waiver by the trade minister.
The minister noted that the ministry is in final stages of implementing the Competitions law, but also local leaders including KCCA, CAO’s and town clerks have been served with circulars prohibiting licencing of non-citizens to operate as hawkers.
Despite the meeting, shops in Kampala remain closed on Wednesday ahead of another meeting with president Yoweri Museveni before reopening their shops.
Speaking on the matter, Edward Ntale, chairperson of the United Arcaders Traders Entrepreneurs Association (UATEA) says yesterday’s meeting with representatives from the Ministry of Finance, Ministry of Trade, and URA failed to provide solutions to the traders’ concerns- a reason why the sit-down strike is continuing into its second day.