Sudhir Ruparelia Backs a More Digital Property Market as Kampala Landlords Adjust to EFRIS

Businessman Sudhir Ruparelia is emerging as a prominent example of how large property investors can adapt to Uganda’s shift toward digital tax administration as Kampala landlords adjust to EFRIS requirements.

Landlords’ representatives said digital systems could improve tax administration but argued that the transition would be easier if the sector received clear instructions and enough time to understand the requirements. Godfrey Kirumira, chairman of landlords and property owners, said EFRIS should be understood as an administrative mechanism rather than a new tax.

Businessman Freeman Kiyimba also called for an extended transition period, saying property owners needed additional time to understand how the system would operate in day to day business. The requests came as URA warned that rental income declarations, receipts and electronic records must correspond with actual tenancy arrangements and payments.

URA Commissioner General John Rujoki Musinguzi said rental income tax collections declined by one percent during the 2025/2026 financial year. The decline contrasted with average growth of about 14 percent in other major tax heads, according to figures presented at the meeting.

Musinguzi linked the shortfall to problems including inaccurate income declarations, failure to issue receipts and weaknesses in tax administration. He warned that under declaring rental income, failing to file returns or avoiding EFRIS obligations could amount to violations of tax law.

The revenue authority has also connected the compliance debate to Uganda’s wider fiscal position. Officials pointed to a tax to GDP ratio of about 14.3 percent and the significant share of domestic revenue used to service public debt, arguing that stronger compliance across productive sectors is important for national financing.

At the same time, URA signalled that enforcement would be accompanied by technical assistance. Musinguzi said a dedicated team would help property owners register and use EFRIS, while officials encouraged landlords to seek guidance before disputes arise.

Sudhir Ruparelia’s presence at the meeting placed one of Kampala’s best known property investors within the broader conversation over the formalisation of the sector. The discussion illustrates the practical challenge facing the rental market as Uganda seeks to combine digital tax administration with a transition that property owners say must take account of how the industry operates.

The next phase will depend on how quickly landlords can adapt, how effectively URA provides support and whether outstanding concerns can be resolved through continued engagement between the tax authority and the property sector.

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