Recently, parliament passed the Income Tax (Amendments) Bill, 2016 with a sole aim relieving legislators from tax on allowances.
It’s estimated that Ugandans would lose more than Shs41.58 billion in additional revenue every year, which is around US$12.5 billion if this bill is passed.
In terms of figures, the bill highlights that instead of taxing an MP on his or her consolidated pay of nearly Shs25m, Uganda Revenue Authority will tax only Shs2.6m per month as salary.
For several Ugandans, that’s billions that could be spent on public services like education – a crucial element in the fight against poverty and inequality – as well as healthcare, public safety, and a range of other services that can be taken for granted.
On 20th April at Hotel Africana , Civil society organizations, the law society, Kampala City Traders Association (KACITA) and Action Aid launched a 5 million citizens’ campaign to petition the President to reject the new insertion, and by so doing, he has the support of the people to make the right decision.
Outlining the 9 reasons why MPs should have their emoluments taxed Julius Mukunda, the Coordinator of CSBAG noted that Uganda risks becoming a Highly Indebted Poor Countries (HIPC) if the lawmakers get away with tax evasion.
The dialogue also attracted regional CSO coalitions who among others included Teso Anti-Corruption Coalition, Western Ankole Civil Society
Forum, Lira NGO Forum. Also in attendance were farmers, students, trades who all made an outcry for the President not to assent to the Income Tax (Amendment) Bill, 2016.
Updates from Harriet Gimbo, Action Aid’s Program Director reveal that the campaign has registered overwhelming support from Ugandans in a short space of time.
“We have mobilized citizens to append their signatures to this petition and in a period of one week, 2,821,909 citizens have signed the petition. These are Ugandans from 88 districts,”Action Aid affirmed through a press statement.
On 25th April , Speaking during a press conference relayed live on NTV, Ministry of Finance Planning & Economic Development PS Keith Muhakanizi said that the first principle of taxation is the principle of equity
“Therefore, if some people working in MTN or teachers in private or government [schools] are having their allowances taxed, it is not proper for some people, or for me, to use my position not to pay tax. All of us must pay taxes,” Mr Muhakanizi stated.
The Church of Uganda, through His Grace, the Right Rev. Stanely Ntagali, has also come in handy arging that it was illegal for MPs not to pay income tax on their allowances
This week, in a letter addressed to President Yoweri Museveni protesting the exemption of Members of Parliament from paying taxes, Archbishop Stanley Ntagali says that such a descision contravenes the spirit and principles of equality and social justice when a section of Ugandans decide to legislate laws that favour them at the expense of the rest of the public, with reference to Article 21(1) of the Constitution of the Republic of Uganda [As amended 2006]
“Your Excellency, what is good for the goose is good for gander. Hence, our august House that is a cradle of national laws should not be used to undermine the cherished values of ‘equality’ and ‘social justice’ by crafting discriminatory legislations. These values are embodied in our Constitution and Holy Books,” he wrote
The Right Rev. additionally brought on board the ongoing decision by government to install a new cancer machine at Mulago Hospital saying, “There is no doubt that with the taxation of the MPs allowances, the country shall be in a position to install a new cancer machine at Mulago Hospital. Subsequent tax savings in successive years can buy more machines so that the treatment of cancer is decentralized to other regional referral hospitals,”
“Therefore, there is no better way MPs can express their patriotism than by contributing their tax deductions to the purchase and/or installment of the new cancer machine(s). We, therefore, pray you, Your Excellency, to take action cognizant of the common good which is the bedrock of patriotism,” Archbishop Stanley wrote in conclusion.
aaron@ugchristiannews.com
