The traders want Government to consider increasing the VAT threshold from Shs150 million to Shs1 billion and reduce the VAT rate from 18 percent to 16 percent.
This was in report the state minister for finance Amos Lugolobi presented before parliament from the outcomes of the engagement between the Ministries of Finance,Trade, URA and the traders.
The traders also expressed concerns that the Electronic Fiscal Receipting and Invoicing System (EFRIS) presents several challenges, such as imposing a high cost of compliance,and most them dont understand the system.
They also urged that the Imported Duty on Fabrics and Garments of 35 percent be reduced because its too high.
They argued that valuation guidelines for goods be standardized to different importers and traders at different times, for the same imported items,and the valuation methods be consistent with the World trade organization.
However Minister Lugoloobi said that they reached a consensus that the Ministry of Finance study and consider the concerns of the Traders especially on VAT in the next two weeks as URA also continues implementing the EFRIS by establishing an office in Kikuubo and also increasing sensitization on the system.
He also said that the Ministry of Trade agreed to write to KCCA and other local governments to stop investors/ foreigners engaged in retail businesses.
He revealed that URA committed to consider waving penalties from traders who had faulted on the EFRIS system.
He has also informed parliament that the above resolutions are bound to change at any time since traders under their umbrella body KACITA are to meet President Museveni tomorrow.
The Mps however advised that Uganda Revenue Authority does not consider Kikuubo as the only business center in providing a remedy for the new taxation system.
