URA APPRECIATES BANKS FOR EARLY EFRIS ADOPTION AND YIELDING OVER ONE TRILLION WORTH OF TAX AND NON-TAX REVENUE

ANNUAL BANKS APPRECIATION CONFERENCE

EFRIS: URA appeals to early adopters to popularize it

File Photo/Courtesy: URA boss John Musinguzi (Centre) and Moses Ogwapus in a group photo with Bank CEOs

Kampala, Uganda | THE INDEPENDENT | The Uganda Revenue Authority (URA) has appealed to traders who are already registered on Electronic Fiscal Receipting and Invoicing Solutions (EFRIS) to popularize it. It emerges that those opposed to this solution think that it is a form of tax.

Electronic Fiscal Receipting and Invoicing Solutions (EFRIS) is a digital tax administration introduced by the Uganda Revenue Authority to monitor transactions in VATable businesses.It is aimed at curbing VAT revenue leakage.

The system, which interfaces with a business’s transactional operations and the taxman, has been utilized by larger taxpayers since 2021.

Although over 35,000 eligible taxpayers have enrolled in the system, it has encountered resistance from smaller taxpayers, who even staged a nationwide business shutdown for four days (April 16th to 19th, 2024) until presidential intervention suspended all penalties for non-compliance with the system until May 7th, 2024.

Addressing members of the banking and financial sector at the 7th annual URA Bankers’ conference, John Musinguzi, the URA Commissioner General called upon early adopters of the tax administration technology to assist others in understanding the system’s advantages.

Musinguzi added that the tax body is aware that as tax administration transforms through technology, many challenges will arise, but the authority has established the necessary support structures to familiarize taxpayers with these developments.

“As we roll out these and many other technology initiatives, it does not come without challenges, some of which we accept as system glitches. We have a committed team to respond, sort out, and improve any system challenges. However, the biggest challenge is the adoption of new ways of doing things,” he stated.

According to Musinguzi, if technologies like EFRIS, are fully adopted, the cost of doing business will decrease, taxation will be easier on both sides, and a level playing field will be established since assessments will be conducted fairly.

The URA Commissioner General promised more engagement regarding complaints over tax proposals but emphasized the need to keep transactions online for traceability.

The conference was organized under the theme “Financial Technology Trends and Financial Inclusion for Enhanced Tax Compliance and Transformation of Uganda’s Economy.”

Fabian Kasi, the Centenary Bank Managing Director delivered a keynote address, illustrating how financial technologies have supported financial inclusion and tax compliance in the banking sector.

Kasi pointed out that 54% of Ugandans don’t use bank services but utilize other formal services such as Mobile Money, insurance, SACCOs, and MFIs. Meanwhile, only 14% are formally banked, up from 11% in 2018 according to the Finscope Survey 2023.

He added that innovative technologies have transformed financial inclusion in Uganda in various aspects, including sending and receiving money, payments, bank deposits and withdrawals, opening bank accounts, loan origination, opening online bank accounts anywhere, internet banking, pull from/push to bank account payments, account-to-account transfers, mobile loans, etc., all of which have narrowed the inequality gap.

According to Kasi, this growth has enabled the banking sector to expand, citing Centenary Bank as an example, whose clientele has increased from 1.3 million in 2012 to 3.08 million as of last year. He also noted that this growth has expanded the bank’s deposit base, loan portfolio, and total assets.

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URN

EFRIS Will Lower Cost of Doing Business and Benefit Traders – Rujoki

softpower.ug, April 27, 2024 | The Uganda Revenue Authority (URA) has called upon the early adopters of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) to support their counterparts who are still facing challenges to enable EFRIS to fully take off.

The URA Commissioner General, John Rujoki Musinguzi, made the call on Thursday at the URA 7th Annual Appreciation Banks Conference held at the Sheraton Hotel in Kampala.

He noted that when the early adopters testify about the good of EFRIS and Ugandans using the system, the cost of doing business will lower to the benefit of traders and the taxman.

“On this front, I would like to call upon all our partners in developing Uganda, especially those who have adopted some of these initiatives, to come out and support us and others who still have reservations and fear, testifying that these systems are for our good because if technologies like EFRIS take off fully, we will be lowering even the cost of doing business,” said Musinguzi.

His call comes days after traders in downtown Kampala opened their shops which they had closed in protest of EFRIS, before they met President Yoweri Museveni.

Musinguzi applauded the bankers for being tax compliant as the pioneers of EFRIS which has enabled the government to seamlessly mobilize and collect revenues from taxpayers.

“Allow me to again appreciate the financial sector for its role in national development. The sector’s contributions in FY 2022-2023 have shown significant growth, reaching 1.085 trillion,” he said.

Musinguzi highlighted the importance of financial technology.

 “The advancements in financial technology, not only facilitate traceable transactions and efficient data management but also secure record-keeping and automated tax calculations, simplifying the compliance process for our taxpayers.”

Representing the Permanent Secretary and Secretary to the Treasury, Moses Ogwapus, the Commissioner of the Financial Services Department at the Ministry of Finance, Planning and Economic Development, said the financial sector can spur economic transformation in Uganda by boosting savings which flow through banks to the private sector growth.

“There are many ways the financial sector can deliver economic transformation in Uganda such as capital allocation, risk management, provision of credit for infrastructure development, innovation, and financial inclusion,” he said.

The winners in the annual appreciation bankers conference are: –

1. Most Compliant Bank:

Overall winner – Diamond Trust Bank

First runner-up – Standard Chartered Bank

2. Most Innovative Bank:

Overall winner – Guaranty Trust Bank

First runner-up – Absa Bank.

3. Best in client service:

Overall winner – Stanbic Bank

First runner-up – DFCU Bank.