Traders across the capital, particularly in the vibrant Kikuubo hub, have shuttered their shops in a unified stand against what they perceive as oppressive taxation. At the heart of their grievance is the 18% VAT levied at each transaction, which they argue amounts to double taxation and stifles their competitiveness within the region.
The protest, organized by the Federation of Uganda Traders’ Associations (FUTA), has garnered significant attention, with scores of businesses joining the movement. This widespread closure has disrupted the once-bustling economic hub, leaving both traders and customers in limbo.
"The current tax regime is crippling our businesses," lamented one trader, echoing the sentiments of many. "We're not against paying taxes, but the system needs to be fair and conducive to our operations."
In addition to objections against the VAT structure, traders have voiced concerns over various aspects of tax policy and administration. The enforcement of EFRIS, intended to ensure tax compliance, has been a point of contention, with traders alleging unfairness in its implementation.
The standoff underscores deeper tensions between the business community and regulatory authorities, reflecting broader challenges in fostering a conducive business environment. As negotiations between traders and the URA ensue, stakeholders are hopeful for a resolution that addresses the concerns of all parties involved.
City traders have locked their shops as they begin the 5-days protest against URA’s EFRIS tax system. pic.twitter.com/y7ZVMOBBUM
— BigEyeUG (@BigEyeUG) April 16, 2024
