Minister of Ethics and Integrity, Rev Fr Simon Lokodo has said that Churches need to start paying taxes.
Speaking during a consultative meeting at the Inter-religious council of Uganda (IRCU) offices, Mengo – Kampala, the minister said yesterday that government is drafting a new policy to streamline religions organisations.
He noted that some of the church collecting 100m at every service, when there are no clear plans as to what the money is going to be used for need to start paying taxes.
Over the same matter, state aided newspaper the New Vision quotes that the religious and faith based organisations policy aims at “co-ordinating and monitoring” religions affairs in the country and helping determine who can and who cannot administer over God’s people, let alone start a church or mosque.
“It shames me to say, but they need to start paying taxes. All churches have to be co-ordinated. they have to work in tandem and have a sort of structure and solid stewardship and belong to something big.” Lokodo said.
This is not the first time statements pushing for taxes on Churches collection have appeared in media.
Last year in November, Kitenga Sub- county leaders in Mubende District said Born Again churches are in business, and thus ought to pay taxes like other enterprise to enable the sub-county get more revenue.
The proposal was reported to have been prompted by the mushrooming churches in Mubende, which they claimed make a lot of money through collecting offertory, tithe and special prayer sessions.
Lokodo asked the clergy yesterday where the many ‘new’ apostles and prophets come from?
“But everyday a new church springs up and it is totally disconnected (from any of the known mainstream churches) Where do these ‘apostles and prophets’ come from? where do they train? someone wakes up in the morning and says they have been anointed to preach the word of God!” Lokodo stated.
“It is a shame that some of us (pastors) are using the holy word to amass wealth while the sheep we shepherd are wallowing in poverty. We need to change all this.” Pastor Charles Tumwine, who was representing Dr Joseph Sserwada said.
Tumwine condemned “misleading” teachings and wrong bible verse interpretations.
IRCU Chairperson Mufti Shaban Mubajje welcomed the policy, however asked that more consultations be done, citing sensitivity of the matter.
As reported, it was revealed during this meeting that some stake holders proposed “the policy should not focus on regulations which depicts suspicion, constrains, control and tends to incapacitate the freedom and operations of faith based organisations.”
According to research findings by a one Shem Byakagaba, a number of stake holders who had been consulted agreed that the policy “would bring orderliness, stability, progress and better service delivery to the nation.”
Expert’s view
Francis Kamulegeya, a tax partner with Price waterhouseCoopers Limited Kampala says to ask churches to pay extra tax on top of its income, raised by its own members who have already paid tax, would in his view be unfair or equitable.
He says unless state policies are to be changed, most churches in Uganda are registered as non profit making charitable and religious institutions and therefore not subject to tax on their income.
“To start with, its not true that churches do not pay tax. They actually do pay tax. This happens when churches or religious institutions in general buy goods and services for their use , for the use of their congregation. This tax is mainly the indirect consumption taxes such as VAT, import duty and excise duty.”
“In my opinion there is a rational reason why the income of churches should be exempt from tax. The vast majority of Churches are funded solely from donations from their members or from fundraising and they receive no handouts from the state.” Francis Kamulegeya says.
marvin@ugchristiannews.com
