President Yoweri Kaguta Museveni has challenged the assertion by some traders that Uganda imposes an excessive tax burden on them.
“The claim that there are too many taxes in Uganda is unfounded, and I’m here to engage with you on this matter,” he stated. The President made these remarks on Tuesday during a meeting with traders from Kampala and various districts at Kololo Ceremonial Grounds. President Museveni’s dialogue with the traders comes in the wake of protests over what they perceive as unfair taxation by the Uganda Revenue Authority (URA) and the perceived inequitable implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).
EFRIS, a system established by the URA, aims to streamline compliance by tracking invoices and receipts issued by specified taxpayers in Uganda. According to the President, the government’s tax policy is deliberate, sparing what “nurtures Uganda’s growth,” and levying reduced taxes where applicable. “When we assumed office, export taxes on coffee and other products were abolished. Presently, there are no taxes on exports from Uganda, nor are there individual taxes. The emphasis is on facilitating internal trade without imposing excessive levies,” he emphasized.
President Museveni clarified that import taxes only apply to goods brought into Uganda, urging traders to consider local manufacturing and exportation for optimal business gains.
“There are various types of traders—those supporting local products, exporters, and those importing goods into Uganda. Internal traders, distributors, and exporters either enjoy tax exemptions or pay minimal taxes. Importers are subject to taxes based on the nature of imports,” he explained. He encouraged traders to transition from importing to local production, citing success stories in sectors like dairy, where local value addition has thrived. The President also addressed concerns about double taxation, asserting that the tax system aims to prevent redundancy and safeguard local industries. Regarding EFRIS, he urged stakeholders to address concerns about its efficacy and fairness, emphasizing the need for constructive dialogue. Minister for Kampala Capital City and Metropolitan Affairs, Hajjat Minsa Kabanda, expressed gratitude to President Museveni for engaging with the traders and pledged their willingness to comply with tax regulations once sensitized. Kampala City Traders Association (KACITA) Chairperson, Dr. Thadeus Musoke Nagenda, appreciated the opportunity to address challenges faced by traders and underscored the need for inclusive decision-making platforms. Federation of Uganda’s Traders Associations (FUTA) Chairperson, Mr. John Kabanda, echoed concerns over high taxes and urged for annual consultations with the President to address business-related issues. United Arcade Traders Entrepreneurs Association (UATEA) Chairperson, Mr. Edward Ntale, expressed readiness to participate in local industrialization efforts but highlighted existing barriers to entry. KACITA Spokesperson, Mr. Issa Ssekito, raised concerns about EFRIS’s lack of an appeal mechanism, emphasizing the importance of a fair and transparent tax system. The meeting also saw the attendance of Prime Minister, Rt.Hon. Robinah Nabbanja, Commissioner General of URA, Mr. John Musinguzi, and other government officials.