UTN News


Kampala - The Tax Justice Alliance a consortium of Civil Society Organization have issued a notice to drag Government to Court over tax exemption of MP’s allowances. President Museveni signed the Income Tax Amendment bill 2016, on Monday 19th allowing Legislators a breathing space

not to pay taxes off their allowances. In a statement, the Coordinator Civil Society Budget Advocacy Group Julius Mukunda said, the struggle to achieve a fair and just taxation system has just started.

Mukunda says they have set aside a legal team to take on Government to court on the illegality surrounding what he termed as the inconsiderate amendment Byte-Mukunda

The organizations have also mobilized citizens across the country to start preparations to recall their representatives in the house, for the misrepresentation. Byte-Mukunda

The President assented to the bill on Monday, a week after the Civil Society complained for not knowing where the bill had got stuck in the process.

The President had returned the bill to the house in May, requesting them to strike out the clause that exempts MP’s allowances from being taxed. RESIDENTS GANG AGAINST LEGISLATORS

Residents in the different areas in the country have already taken on their legislators to demand for explanations about the income tax amendment bill.

In Ishaka, Residents have joined the Civil Society in condemning the move by Members of Parliament not to pay taxes on their monthly allowances.

The residents have protested the move saying the leaders are fleecing the country. The residents protested the move in a peaceful demonstration, matching around Ishaka town to show their dissatisfaction, and demanding for an explanation from their MP’s. AMBIENCE

Ignatius Byaruhanga is a resident of Rukiga County, and organized the match to condemn the decision. He says MP’ need to know their role, which far away from tax exemption, saying all leaders at all levels should be accountable to the voters, therefore excluding themselves from paying taxes is a blatant betrayal to the Nation. SB……IGATIUS BYARUHANGA-RESIDENT F RUKIGA POPS……ISHAKA RESIDENTS SB……ELLY MUHWEZI-PROGRAM MANAGER-WESTERN ANKOLE

In Iganga, residents convened a meeting condemning the decision by the President on the MP’s taxation. POPS-Residents

In Masindi, the residents led by local civil society activists matched through the town, as a way to express their dissatisfaction on the move by the legislators.

These demanded for fairness from the leader, saying they deserve better services in terms of health facilities, education and infrastructures, which cannot be attained without leaders and workers pain their taxes. POPS-Residents of Masindi

The president had earlier demanded that the Income Tax amendment bill 2016 be amended, to eject the clause that exempts MP’s allowances from taxation. After the President assenting to the bill, the country will lose at least up to sh. 53.4b ever months creating a monthly taxation deficit.

Apparently the country is into six months of the 2016/17 financial year without a law to operationalize the revenue proposals under the income tax amendment bill 2016, a situation deemed detrimental to domestic revenue collection.

If the MP’s successfully achieve their goal of not paying taxes off their allowances, other professionals are geared up to demand for the same, a move that will incapacitate the tax body to realize its domestic revenue targets.

Fredrick Kawoya, a policy analyst at ActionAid says they are not relenting on this, saying legal battles will be the next move to have justice Byte-Fredrick Kawooya