MPs plan motion to dodge Shs3.8bn tax


The Civil Society Budget Advocacy Group (CSBAG), a budget monitoring group is outraged that Ugandan legislators are proposing a motion to exclude their salaries from tax.

CSBAG is a coalition that brings together CSOs and individuals in Uganda to engage in influencing the budget processes.

“We see MPs lose their moral authority to demand for better service delivery to which they do not contribute to through taxes,” the group said in a social media message on Tuesday.

It wondered whether Uganda tax body [URA] was comfortable that MPs plan to dodge income tax.

In 2013, a whistle-blower revealed that MPs hadn’t paid income tax from 2004 due to negligence.

Each MP is expected to pay Shs9m monthly as income tax from their salary.

Should they dodge, the country loses Shs3.8bn monthly in tax revenue.

Parliament has already petitioned the Court of Appeal over the Commercial Court ruling that ordered the Parliamentary Commission to deduct Shs9m in monthly Pay as You Earn Taxes (PAYE) from MPs salaries.

In February, the Commercial Court ruled that the Parliamentary Commission should deduct tax from MPs emoluments.

According to Daily Monitor, the ruling was in response to a 2011 petition by Francis Byamugisha who argued that non-taxation of MPs income was causing a deficit in national tax collections.

Ms Jane Kibirige, the Clerk to Parliament, and PWDs MP William Nokrach (a Parliamentary Commissioner) said Parliament would be challenging the ruling -after Bugweri County MP Abdu Katuntu advised against amending the Income Tax (Amendments) Bill, 2016, to deal with the matter.

Julius Mukunda, CSBAG coordinator insists the country will lose Shs41.58b annually if MPs are left to have their own way in this matter.

Theinsider Uganda is a news publishing website. We are located at Suite G25 Metroplex Shopping mall, Naalya Kampala Uganda.
Enter ad code here

Copyright © 2016 Theinsider Uganda. Unearthing the truth

To Top