Shock as MPs Rekindle Thrust Over tax exemption

By Serestino Tusingwire

Members of Parliament have maintained the push for a tax exemption on their allowances, claiming any further cuts would be burdensome

The Income Tax Amendment Bill 2016 was passed by Legislators detspite negative reactions from the public; and sent it to the president who in turn refused to assent it.

While appearing before the Parliamentary Committee on Finance, commissioners Peter Ogwang (Usuk County) and Arinaitwe Rwakajara (Workers) said the commission will not allow any amendments aimed at imposing taxes on MPs’ allowances since they pay monthly taxes of more than Shs3 million each.

“A Member of Parliament is entitled to annual gratuity which is taxed by 30 per cent in addition to our monthly tax dues,” Mr Ogwang said, adding that it would be a burden if members are taxed on every little bit of their earnings.

“We request that the Bill be returned to the President to help us exempt taxes on facilitation which is mainly fuel. At least help us with facilitation particularly transport,” he said.

The 9th Parliament proposed amendments to Section 21(1) of the Income Tax (Amendment) Bill, 2016, to exempt members from having their allowances taxed.

However, President Museveni upon hearing the public outcry on the proposed exemptions on allowances refused to ascend to the Bill in May and returned it to Parliament saying that it was not “morally upright” for leaders to send a bad image to the public.