Local media in Uganda’s capital, Kampala, report that numerous traders closed their shops on Tuesday in response to the implementation of a controversial tax invoicing system.
Many business owners fear that the new system will complicate their operations and increase their tax burdens. They also cite the high cost of the software as a significant concern.
The Electronic Fiscal Receipting and Invoicing System (EFRIS) was introduced by the tax authority in January 2021 to monitor sales and taxes in real-time. However, its enforcement among small-scale traders has only recently begun, sparking protests.
Last week, traders in Kampala and other major cities staged two-day protests against the implementation of the system.
Despite the traders’ objections, Uganda’s Revenue Authority has proceeded with the system, arguing that its adoption will reduce tax evasion and streamline the tax filing process for businesses.