THE FDC MEDIA BRIEFING APRIL 15, 2024

THE FDC MEDIA BRIEFING APRIL 15, 2024

THE PLIGHT OF UGANDA’S TRADERS

FDC is concerned with the plight of traders and businessmen who are operating in a harsh environment, forcing many to collapse.

The Uganda Revenue Authority (URA) developed the EFRIS (Electronic Fiscal Receipting and Invoicing System) for e-Invoicing and VAT reporting of commercial transactions as per Sections 73A and 73B of the Tax Procedures Code Act 2014, supporting the implementation of EFRIS. URA launched this system on January 1st, 2021. All companies registered in Uganda were directed to use the EFRIS platform to report electronically issued invoices and cash receipts to the URA. Under this system, organizations and companies operating in the Ugandan market must submit their electronic sales invoices to the URA, and the URA must approve the invoice before the company can transmit it to its client. According to URA, the implementation of the EFRIS system aims to tackle tax evasion and the fraudulent practice of false invoices for fake purchases.

The FDC stands with Uganda’s traders and businessmen in protesting the enforcement of the URA’s EFRIS system. We believe that it was hurriedly enforced without sensitizing stakeholders, such that they appreciate it. Also, the lack of requisite infrastructure to use the system means traders are not fully aware of its significance, the specific businesses required to enroll, the variety of taxes due, and the potential opportunities that lie ahead. This has led to traders’ frustration with the EFRIS system, greatly affecting their businesses. We have established that EFRIS exposes traders to a heavier tax burden, including previously hidden taxes like withholding tax, income tax, and VAT.

Clear records show that over 200,000 people are closing their businesses due to EFRIS, resulting in a shortfall in tax collection every day.

We believe the majority of businesses operating in Uganda are under informal arrangements. The financial burdens imposed by EFRIS on small businesses only serve to kill these enterprises. In fact, the URA’s enforcement tactics and steep penalties for non-compliance hinder widespread adoption of the system. URA’s current enforcement approach, as well as the high penalties of Shs6 million per receipt (for failure to use the system), greatly discourage the adoption of the technology.

However, there are deeper grievances fueling the protests beyond the initial discontent with EFRIS. The FDC supports the traders’ protests in the form of sit-down strikes and lockdowns, ongoing to put pressure on the Government to address the traders’ plight. This plight includes not only the implementation of the EFRIS system by URA but also:

  • The current 18% VAT rate, imposed on each trader as goods move to the next trader or business, amounts to double taxation and limits competitiveness in the region, especially compared to Kenya, whose VAT is at 16%.
  • Additional grievances include elevated import duty rates on textiles and garments, with import duty standing at 3.0 and 3.5 USD per kilogram, respectively, increasing the cost of doing business and encouraging smuggling, resulting in numerous uncleared containers at URA facilities. The FDC calls for a reduction of these duties back to 25%.
  • Amidst these economic pressures, local traders shouldn’t be subjected to non-standardized URA valuation guidelines for imported and exported goods, hindering effective business planning and placing traders at a disadvantage compared to their regional counterparts.
  • Further compounding the issue is the alleged unprofessional conduct of the taxman’s enforcement officers and the high interest rates imposed on local businesses, ranging from 17-36%, contrasting sharply with the more favorable conditions afforded to foreign competitors, particularly Chinese firms, who benefit from lower credit rates and additional business incentives.

The FDC calls upon the Government and URA to engage stakeholders so that the plight of our traders and businessmen is attended to. Despite the elaborate and harsh tax enforcement mechanism put in place by the Government, which has increased the tax base where URA annually collects 31 trillion from Ugandans, FDC is concerned with the indiscipline in borrowing. We cannot service such loans, and we are also concerned with the wastage of taxpayers’ money. If the money collected from Ugandans was put to better use, Uganda would be a better country to live in.

THE CONTENTIOUS FINAL SENDOFF CEREMONY OF OUR COLLEAGUE MS. SARAH EPERU

On Saturday, April 13th, 2024, we laid to rest Ms. Sarah Eperu, a founding leader of the FDC and a veteran media activist, at her burial grounds in Koloin, Mukura Subcounty, Kapir Constituencies, Ngora District. Sarah succumbed to a kidney-related illness at Life Link Hospital in Kyaliwajjala, Kira, Wakiso District.

On behalf of the FDC family, both locally and internationally, I extend our condolences to the Eperu family upon the loss of their beloved daughter, Sarah Eperu. She was a remarkable and veteran journalist and one of the founding leaders of the Party. Until her passing, she served as the Party branch Chairperson of Kapir Constituency in Ngora District, and held various leadership positions within the Party, including Former Deputy Spokesperson, Party branch Chairperson for Ngora District, and Party National Women’s League Chairperson. We honor her commitment and resilience in building a better Uganda for all. Our thoughts and prayers are with the Eperu family and the people of Ngora District during this difficult time.

We are concerned about the behavior of our colleagues at Katonga, who attempted to politicize the funeral of our sister, Sarah Eperu. They transported a group of people from Kampala, Wakiso, Jinja, and Iganga, purportedly for security reasons, but ended up humiliating mourners by conducting body searches and turning away individuals wearing shirts with the portrait of Ngora Woman MP, Hon. Apolot Stella Isodo. They showed little regard for the sanctity of the Catholic Holy Mass, moving around and causing tension among mourners.

Mourners questioned the intentions of these individuals at the funeral. If their purpose was to provide security for Col. Besigye, it should be noted that Dr. Kizza Besigye was not in any danger, and the police were deployed to ensure the security and peace of all mourners.

These actions by the vigilantes angered mourners, particularly FDC grassroots leaders from Teso. Their disruptions attracted the attention of the Officer in Charge of Koloin Police Station, who instructed them to leave the area. Their resistance further angered mourners, causing the proceedings to halt, with the Parish Priest, Mgr. Rev. Fr. John Eriau, concluding with the final prayer before the body was taken to the graveyard.

We believe that this chaos was instigated by Col. Dr. Kizza Besigye, who deliberately undermined the elected representatives of the people, including the Woman Member of Parliament, Hon. Apolot Stella Isodo, and the national leadership of the FDC.

As a Party, we condemn the unfortunate events of Saturday, where Col. Dr. Kizza Besigye attempted to politicize the solemn occasion of Sarah Eperu’s final sendoff. He took advantage of the situation for political gain, disregarding the efforts of the local organizing committee led by the Woman MP for Ngora District, Hon. Apolot Stella Isodo. All the arrangements for the funeral were meticulously planned by this committee, which had worked tirelessly since Sarah’s passing last week, only to be disrupted by the Katonga team on the day of the burial.

We urge Col. Besigye to refrain from using violence for political gain. Sarah deserved a dignified sendoff, better than what transpired on Saturday. We continue to hold Sarah’s family, particularly her children, in our prayers. May the soul of our departed colleague, Sarah Eperu, rest in eternal peace.

 

CONSULTATION OF OUR KATONGA COLLEAGUES OVER THE 4 OPTIONS

Consultation among our Katonga colleagues regarding the 4 options

In recent weeks, we’ve witnessed our colleagues traveling across the country to consult on the following four issues:

  • Forming a new Party
  • Using force to evict the current leadership from the Party Headquarters and reclaim it
  • Reconciling with the Party leadership
  • Forming a pressure group to support one of the existing political parties

The FDC Party has no issue with any member leaving FDC to establish a new political party. The Ugandan constitution guarantees this freedom in Article 29(1)(e), stating “Every person shall have the right to freedom to form and join associations or unions, including trade unions and political and other civic organizations.”

Additionally, within the FDC, there is freedom of entry and exit. Our colleagues operating at Katonga road as a pressure group have the option to develop into a fully-fledged political party if they desire, as we do not coerce anyone in FDC. They would not be the first group to leave the Party to form a new one. For instance, Hon. Beti Olive Namisango Kamya Turwomwe, a key founding leader, left FDC and established the Uganda Federal Alliance (UFA) in 2010, and our former Party President, Hon. Rtd. Maj. Gen. Gregory Mugisha Muntu, formed the Alliance for National Transformation (ANT) in 2019.

Regarding the use of force, we are familiar with the operational methods of our colleagues because we have collaborated with them. We will not tolerate anyone using force to remove legally elected Party leaders from the Headquarters. If they resort to violence, it will be met with an appropriate response. Violence will not be tolerated, and nobody has a monopoly over it. We will address it decisively. We have been promised and threatened with such attacks many times, such as the “Tujja Tujja,” but it has become a familiar refrain from our colleagues. They are free to do as they wish, but it is our duty to defend the Party. Anyone who attempts to attack us will face equal measures.

The Party welcomes the reconciliation gesture, as recommended by the Special Elders Committee report led by Hon. Prof. Frank Nabwiso, and adopted by the Special National Council sitting on Friday, July 28th, 2023, at the Party Headquarters in Najjanankumbi. Dialogue is the way forward, and we are prepared to engage with our colleagues for the betterment of our Party.

 

FOR GOD AND MY COUNTRY

 

PATRICK OBOI AMURIAT

FDC PRESIDENT

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