Museveni meeting with traders called off again

President Museveni arrives for the meeting with the traders on May 7, 2024.

The meeting between President Museveni and traders, where he was expected to discuss his decision on their demands regarding the implementation of Electronic Fiscal Receipting and Invoicing Solution (Efris) and taxes on garments, has been called off again.

Mr Museveni was set to meet the traders tomorrow at the Kololo Independence Grounds after missing a previous meeting on June 20.

In an interview with this publication yesterday, Mr Sandor Walusimbi, the Senior Press Secretary to the President, confirmed the development, saying the meeting was cancelled because the venue is still undergoing rehabilitation.

Mr Walusimbi said that the President will meet with the traders at a later date, which will be announced.

Mr Thaddeus Nagenda Musoke, the chairman of Kampala Capital City Traders Association, said they learnt about the meeting’s cancellation from a message sent by Ms Minsa Kabanda, the Minister of Kampala Capital City and Metropolitan Affairs, to their WhatsApp group.

“We met Minister Kabanda on Friday and confirmed that we would meet the President at an undisclosed location. The next day, as leaders, we met the traders and briefed them about the meeting. Then in the evening, the minister sent us a voice note saying the President wouldn’t meet us,” he said.

Mr Nagenda said many traders are now stranded as they had paused the importation of goods and delayed business decisions in anticipation of what the head of state would decide at the meeting. 

“They are worried. They don’t know what is going on. They want to hear from the President. If he can’t meet us, let him use the media so that we can know the fate of our businesses,” he said.

He said some of their members have threatened to go on strike if the issues are not resolved. 

“Currently, there are protests against corruption at the Parliament. Our worry as leaders is that if the members strike at this time, other groups might take advantage and we lose control of raised issues. It is the reason why we want traders to hear from the President,” he said. 

Background

In April, the traders closed their shops in protest against the implementation of the Electronic Fiscal Receipting and Invoicing Solution (Efris) and the heavy taxes imposed on imports, particularly on garments.

They later halted the protest following a request by the President who sought a meeting with them.

On May 7, a meeting was held at the Kololo Independence Grounds. During the meeting, Mr Museveni told the traders that he wouldn’t stop the implementation of Efris and heavy taxes on imported garments.

“Our taxation of those goods is deliberate. Uganda is spending $800m on importing garments. That means the money we get from coffee we sell abroad goes back on buying clothes. …how long will we allow this bleeding? That is why we tax those (imported) items,” he said.

Imported garments are taxed per kilogramme, which the traders say has made clothes too expensive.

The President also suspended penalties for those found with issues in the implementation of Efris.

After failing to reach an agreement with the traders, Mr Museveni promised to hold another meeting with the traders on June 20, after he had consulted “his tax experts”. However, the meeting was postponed to tomorrow. But this too has been suspended