M7 Dumps Income Tax Bill for the Third Time
By Serestino Tusingwire
The controversial Income Tax bill that seeks to exempt MPs’ emoluments from taxes has been rejected by President Museveni for the third time, citing anomalies in it.
The president on Tuesday returned the bill to parliament to have Clause 21 that exempts income tax of MPs rectified.
On November 15, Parliament passed the Income Tax (Amendment) Bill 2016 after the President had for the second time returned it to Parliament.
According to the president, exempting MPs from paying taxes could send a dangerous message to other Ugandans who might also be tempted to join the bandwagon.
Museveni said by rejecting the bill, he is trying to protect production sharing agreements.
“The President says restricting the cap on allowable deductions would be a change in the position accepted by both government and the licensees,” Speaker Rebecca Kadaga told the house on Tuesday.
The president’s decision is prompted by the public outcry, with activists saying it inhuman for MPs who are the most paid to exempt themselves from paying taxes leaving the burden to the poor who are at zero.