Africa-Press – Uganda. Uganda Revenue Authority (URA) has said it “could have rushed to penalise some taxpayers even before they understood technology” related to the Electronic Receipting and Invoicing System (EFRIS).
Speaking during an engagement with traders in Kampala, URA Commissioner General John Musinguzi Rujoki, said they had realised that technology was not a cup of tea for many people, noting that “just maybe, we could have rushed to penalise some taxpayers”.
“There is need for a transition period because as we have seen technology can be intimidating,” he said.
Mr Rujoki’s comments came after a series of concerns, in which traders protested against the enforcement of EFRIS because of its intrusive and costly nature.
Therefore, Mr Rujoki said URA, would waive penalties that were issued in error or in a situation where the taxpayer did not properly understand them.
Many traders have previously fallen victim to infringing instructions from URA that have resulted in freezing their accounts, while others have been issued with agency notices over the recovery of disputed penalties.
Presently, EFRIS is implemented on value-added tax registered traders. It requires a trader to issue an e-receipt for every transaction, failure of which they are issued with a Shs6m penalty irrespective of the amount of the invoice.
The system records and generates receipts, which allows URA to efficiently tax businesses, many of which have previously paid less or not paid at all.
EFRIS also fast-tracks refund claims, ensures prompt recording and reflection of transactions on the URA portal, and allows real-time interface between taxpayers and the URA.
However, Ms Phiona Naturinda, a trader told, that although she was a beneficiary of the waiver, it is not a solution to the problem.
“URA should encourage traders to voluntarily embrace EFRIS, until then, these penalties may not end,” she said.
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