Businesses across major towns and cities in Uganda came to a standstill on Wednesday as part of a protest against steep taxes and the implementation of a new revenue collection system.
Initiated by the Federation of Uganda Traders Association (FUTA) on Tuesday, the week-long strike has expanded beyond the capital Kampala, resonating throughout various regions of the country.
“We’ve urged all businesses nationwide to cease operations in protest until the government acknowledges our concerns,” stated FUTA president John Kabanda.
The shutdown encompasses a wide array of establishments, from shops to butcher shops, bakeries, and eateries, all united in opposition to high taxation, including an 18 percent Value Added Tax (VAT), and a recent tariff on imported clothing.
The catalyst for this mass action was the implementation of the Electronic Fiscal Receipting and Invoicing System (EFRIS), which mandates all transactions reported to the revenue authority to be in digital format.
Responding to the protest, Uganda’s minister of state for finance, Haruna Kyeyune Kasolo, attributed the unrest to a misunderstanding of the new system, emphasizing its benefits for businesses and national tax collection efforts.
However, local traders are vehemently expressing frustration over the heavy tax burden they face. Bernard Musoke, a 48-year-old retail shop owner, highlighted the strain of high taxes and operational costs, questioning the government’s utilization of these funds.
Sylvia Atwenda, a 31-year-old entrepreneur in cosmetics and hair accessories, echoed this sentiment, emphasizing that businesses are established to support families, not to solely fund governmental expenditures.
Amidst the closures and demonstrations, traders are calling for governmental support and subsidies to nurture business growth, rather than suffocating them with excessive taxation
