Business 28 April 2026 Daily Monitor (Uganda)
Uganda Businesses Face Harsher EFRIS Penalties Under New Tax Bill
The Tax Procedures Code (Amendment) Bill, 2026 proposes doubling penalties for EFRIS non-compliance to double the tax due or Shs200,000, whichever is higher, sparking backlash from traders. While the VAT registration threshold rises to Shs250 million, exempting smaller firms, critics argue it falls short amid mandatory EFRIS rollout to 12 sectors. Source: https://www.monitor.co.ug/uganda/business/prosper/businesses-face-tougher-penalties-over-efris-5438906
Ugandan businesses risk steeper fines for failing to use electronic fiscal devices or issue e-invoices and e-receipts under the Tax Procedures Code (Amendment) Bill, 2026. The penalty jumps to double the tax owed on transactions or Shs200,000, whichever is greater, targeting sectors mandated to adopt the Electronic Fiscal Receipting and Invoicing System (EFRIS).
Kampala City Traders Association (KACITA) chairman Hajj Issa Ssekitto has slammed the measures, saying they overlook the challenges in the wholesale and retail sector, which employs over 2.5 million people and makes up 32% of businesses. Effective July 1, 2025, EFRIS became compulsory for 12 sectors including fuel trade, manufacturing, construction, transport—even informal operators like boda bodas—and hospitality, regardless of VAT status.
Experts from BDO East Africa note the changes aim to boost compliance and enforcement by the Uganda Revenue Authority (URA), applying to all gazetted EFRIS users. John Jet Tusabe highlighted that while past fines were Shs100,000, the new ones are tougher to ensure e-receipt issuance.
On a positive note, the bill raises the VAT registration threshold from Shs150 million to Shs250 million in annual turnover, sparing small businesses from VAT obligations and easing URA’s admin load. It also proposes writing off principal tax arrears from before June 30, 2016, to clean up records.
Reactions are mixed: KACITA welcomes the threshold hike but pushes for Shs1 billion and 16% VAT to match regional peers. Civil society groups like Tax Justice Alliance Uganda see relief for micro-firms but warn of risks like local contract disadvantages. Manufacturers urge formalizing informal traders first.
Regional voices, including the East African Business Council, call for aligned policies to cut cross-border trade friction, as EAC e-invoicing systems remain non-interoperable.
This article is based on a report from Daily Monitor (Uganda).