The Downfall of KACITA as Traders Loose Confidence in it

One would wonder what KACITA is up to behind the agenda of fuelling more demonstrations. Some among the reasons that called for the first closing of shops by traders indicated that they were not sensitized and also lacked the requisite infrastructure to use the new system, (EFRIS).

Jul 10, 2024 - 08:28
 0
The Downfall of KACITA as Traders Loose Confidence in it

KAMPALA - Inside sources have leaked some information to this media outlet that the Kampala City Traders Association (KACITA) internal structural formation is allegedly under pressure and panicking , wondering if traders will agree to the idea of closing shops for the second time, as it works for them.

“This is a trick which the (KACITA) body, meant to fight for the rights of traders, is using to lobby money from the president but for only its own benefit not for the benefit of the majority Ugandans in trade. Also it is said that when they reach to present paperwork, they present proposals of buying land, constructing factories and ignore to say anything about what stresses a trader in the downtown.” Said the undisclosed source.

It should be remembered that when government through URA introduced the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) upon traders , a peaceful demonstration occurred on 8th April as they decided to ignore businesses for about a full week, expressing their dissatisfaction with the new business monitoring policy by government, which they say it is too strict on them and gives no room in terms of income or profit secrecy in their businesses. Although EFRIS is not a tax, some traders have described it as double taxing.

Among others, several issues have hardened the life of traders in the business, however,URA started implementing EFRIS in 2021 to address tax administration challenges relating to business transactions and the issuance of receipts. The system helps URA assess the right taxes using accurate and authentically generated information.

Do trader’s associations like KACITA need to call for more demonstrations or take a path of collaborating with URA to sensitize traders more on the EFRIS?

One would wonder what KACITA is upto behind the agenda of fueling more demonstrations. Some among the reasons that called for the first closing of shops by traders indicated that they were not sensitized and also lacked the requisite infrastructure to use the new system, (EFRIS).

In a report by the Independent publication with one of the leaders, during the concluded demonstration, Godfrey Katongole, the chairman of Kampala Arcaders Association (KATA) mentioned that they closed their businesses after several attempts to discuss with the government were futile.

Katongole said they were protesting because of the EFRIS, applied upon them yet they do not know how it works , also taxes like import duty standing at 35% should be reduced to 20%.

Is there hope the President will stop URA’s EFRIS against traders in his next meeting with them

While in the recently concluded engagements with trader's leaders, Museveni advised URA not to force traders to use the EFRIS machine but rather be flexible and let the traders use cheaper options like mobile phone technology for the same reporting.

Despite his advise, traders are currently seeking for another meeting with the president by 31st of this month to add more weight on their cry towards the unfair taxation policies, according to them.

Benjamin Mwibo Benjamin Mwibo is a talented, passionate and creative journalist with a commitment to high quality out put that is factual and researched. Above all Dedicated with a strong desire to identify the truth of the matter.