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John R. Musinguzi, the URA Commissioner General

URA's John Musinguzi Discusses EFRIS Implementation with Kampala Traders

EFRIS was introduced by URA in January 2021, targeting to overcome challenges in tax administration related to business transactions and receipt issuance.
posted onMarch 25, 2024

In a move to address concerns surrounding the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), John Musinguzi, the commissioner general of the Uganda Revenue Authority (URA), held a crucial meeting with traders from the Kampala Central Business District. The gathering aimed to clarify the operation and objectives of EFRIS amid traders' worries about penalties for non-compliance due to misunderstanding the system.

EFRIS was introduced by URA in January 2021, targeting to overcome challenges in tax administration related to business transactions and receipt issuance. Although the rollout of EFRIS marked a step forward, feedback suggests that some merchants equipped with Electronic Fiscal Devices or those who have integrated with URA via system-to-system methods have not been utilizing EFRIS comprehensively for transactions.

During the meeting, Musinguzi sought to clarify misconceptions about EFRIS, highlighting that the system is not an additional tax but a technological tool designed to streamline VAT collection, enhance record-keeping and inventory management, and facilitate the generation of electronic receipts and invoices. He advised merchants to issue detailed receipts to customers when unable to use EFRIS, to ensure VAT collection on sales is possible.

Musinguzi emphasized the importance of compliance, particularly in the Kikuubo area, reminding traders of their duty to remit VAT. "Although we will limit ourselves to the enforcement of EFRIS in Kikuubo, it is your obligation and responsibility to remit VAT. So, issue proper receipts bearing addresses, but not cash sales," he explained.

He praised the traders who have been cooperative and responsive to URA's initiatives, stating that constructive dialogue is the key to resolving issues. "Fights and protests cannot bring solutions to the issues raised, but dialogue can," Musinguzi remarked.

Traders also expressed concerns about corruption and undue practices among URA staff. In response, Musinguzi encouraged them to report any misconduct to the staff compliance division, tasked with maintaining integrity within the workforce. He assured that URA would ramp up efforts to educate and sensitize the business community about EFRIS and other tax-related matters.

Dr. Thaddeus Musoke, Chairman of the Kampala City Traders Association, underscored the necessity of creating a business-friendly environment and lauded URA for its openness to dialogue, noting the positive outcomes of past meetings. The traders are expected to meet with the President in April to further discuss their concerns.

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