Following a four-day strike against steep taxes and a new revenue collection system, businesses across Uganda resumed operations on Saturday.
The strike, initiated by the Federation of Uganda Traders Association on Tuesday in Kampala, quickly spread to various parts of the country.
“We have called off the protests countrywide and agreed to reopen our businesses as consultations with the government on the electronic Fiscal Reciepting and Invoicing Solution, Value Added Tax and other practices that were hindering our businesses” are being held, the president of the association, John Kabanda, told AFP Saturday.
During the strike, shops and various businesses, including butchers, bakers, and eateries, closed to protest high interest rates and taxes, notably the 18 percent Value Added Tax and a new levy on imported clothing.
The catalyst for the protest was the government’s enforcement of a digital tax regime known as EFRIS, mandating digital submission of all receipts and invoices to the revenue authority.
On Friday, shopkeepers’ representatives met with President Yoweri Museveni, resulting in a directive for the Uganda Revenue Authority (URA) to temporarily suspend penalties to allow broader consultations.
“We’re back in business,” remarked John Wycliffe Bweza, a hardware shop owner in Kampala. “With reassurance from the president, we can work without fear of closure by the revenue authority,” added the 27-year-old.
Faridah Nakakawa, a 41-year-old garment importer in Kampala’s commercial hub, Kikuubo, stated, “If the government maintains these taxes, we’ll organize another protest until they take action.”
