MPs Plot To Block Taxation Of Car Grant, Increase It From Shs150m To Shs200m

MPs Plot To Block Taxation Of Car Grant, Increase It From Shs150m To Shs200m

A section of Ugandan lawmakers have vowed to block any attempt by Uganda Revenue Authority (URA) to slap taxes on their car grant.

All legislators are expected to receive shs150 million next month as facilitation from Parliament to purchase cars. URA has reportedly written to Parliament, informing that the money will attract a tax.

However, Denis Hamson Obua, Ajuri County MP and former Parliamentary Commissioner, says taxing the car grant would be levying double tax on the legislators.

URA boss, Doris Akol in her August 18th 2016 letter to both Speaker Rebecca Kadaga and Clerk to Parliament Jane Kibirige noted that the MPs should be ready to remit taxes on the Shs150M they are to receive from cars.

Meanwhile, we have learnt for our sources that a section of MPs on the Parliamentary Commission met with President Yoweri Museveni in a secretive meeting and the team agreed to have the money increased to Shs200m.

If the Shs200M is approved, it will mean that the car grant for MPs has almost doubled having risen from Shs103M to the contentious Shs150M and now Shs200M.

Initially, the tax payers were condemned to coughing out Shs64Bn but the dimes have now risen to over Shs85Bn for the 428MPs.

Kadaga announced recently during plenary that the issue of MPs’ transportation had been resolved and they were set to receive their money in October 2016.

Earlier, the issue of the car grant had put Parliament at loggerheads with the Executive after it emerged that the Ministry of Finance excluded the Shs64.05 billion for the MPs’ vehicles in the 2015/16 Budget on grounds that the Parliamentary Commission had “overshot” its budget ceiling.

22 new districts expected to be created between 2016 and 2019, meaning the additional 22 lawmakers will require an extra Shs3.3 billion for their vehicles, raising taxpayers expenditure on MPs cars from about Shs40b (Shs103m each) in 9th Parliament to nearly Shs70b in the 10th Parliament.

We have established that legislators in the 10th Parliament receive more money for cars because of the appreciating dollar rate. Each MP will pocket Shs150m,up from Shs10m in the 9th Parliament, and will be at liberty to buy a car of their choice.