MPs Defy President Museveni, Pass the Income Tax Bill

MPs Defy President Museveni, Pass the Income Tax Bill

Members of Parliament have defied president Museveni and passed the income tax bill into a law.

This was disclosed by the speaker of Parliament Rt Hon Rebecca Kadaga.

Speaker Kadaga says she has written to president Museveni opining that if he wants any amendments, let Finance Ministry table them.

The 9th Parliament passed the Income Tax (Amendment), 2016 in March this year, but the President returned it to Parliament for reconsideration over Clause 21, which exempted MPs from paying taxes on their allowances, which include mileage, town running and constituency facilitation.

The President said that “The decision of Parliament to grant itself a tax exemption status is not only injurious to the revenue effort but is also not politically and morally correct as small income earners like teachers, nurses and other public employees cannot be expected to pay income tax on their consolidated meager salaries and yet MPs who earn considerably well are exempted.”

The Committee on Finance, which reconsidered the Bill, rejected the argument that MPs do not pay taxes saying in its Report that each Member pays Shs3.3m per month translating into Shs40.4m a year from taxes on salary; Shs16m on gratuity at the end of a twelve year period; while each Member’s committee sitting allowance is also taxed.