KAMPALA– Manufacturers under their body of Uganda Manufacturers Association have noted that Electronic Fiscal Receipting and Invoicing Solution (EFRIS) is among the most efficient means of collecting taxes, however its introduction to traders requires a lot to be improved upon.
UMA Board Chairman , Deo Kayemba addressing the press at UMA offices in Kampala on Friday.
On addressing journalists at UMA offices in Lugogo following the four days stand off of business in various parts of the country in protest of the system, Deo Kayemba UMA Board Chairperson noted that although they support EFRIS system 100 percent, traders need to be properly sensitized.
“Manufacturers have already embraced the system because it widens tax base , it formalizes the economy so that all players in the economy can contribute to their tax obligations on a leveled ground and it digitizes the economy which is a critical factor in the economy.”
He however noted that although they embraced the system and it working for them, the government need to ensure that before introduction of such systems, it should invest heavily in equipment to facilitate smooth implementation.
“This would reduce the burden from the tax payers i.e the POAS the manufacturers are using to collect tax. If the tax payers are to invest in these system, there should be a system of ensuring that they recover their money invested in buying the equipment.”
UMA also addressed that they rushed to introduce penalties in implementation of the system which has not yet been fully understood by the business people.
“There is high handedness on penalty yet the Implementation still has some challenges that must be addressed on both sides (the tax payers and URA).”
The manufacturer’s body also condemned the practice of some of their members who engage in business competition with the traders.
“We agree that there is a problem when manufacturers start doing last mile deliveries because they displace SMES and competition.”
They however suggested that in order to limit this practice, the government through Ministry of Trade Industry and Cooperatives should fast track guidelines to regulate market.
Last evening , the president suspended penalties involved with EFRIS system , promised to look into the system with the officials from URA and Ministry of Finance which prompted traders to lift their strike.