A decision by legislators to exempt their allowances from being taxed by amending the income tax law has irked Gulu district Chairman Ojara Martin Mapenduzi.
“They [MP’s] earn more than Shs 20 Million every month and they want to dodge paying taxes. This is very unfair. It is the responsibility of Ugandans to pay taxes,” an agitated Mapenduzi told a press briefing in Gulu on Friday.
Mr Mapenduzi who is also chairperson for the Acholi district LC 5 chairpersons argued that it would be unfair for members of parliament to exempt themselves from taxes at a time when Ugandans are suffering from stagnant wages, biting poverty and unemployment.
He announced that he had joined civil society organizations in the fight to see that the members of Parliament pay taxes on their allowances stating that MPs should not promote selective taxation in Uganda.
When contacted on phone, Gilbert Olanya, the Kilak Member of Parliament in Amuru district dismissed Mapenduzi’s call on MPs to be taxed on their allowances saying the Gulu Chairman has not conducted adequate research on the matter.
Olanya said the government already deducts taxes on MP’s fuel allowances, pay as you earn and that Members of parliament also pay indirect taxes every month.
“Every Member of Parliament is paying taxes. Our fuel allowances are deducted. And also we remit Pay as you earn every month. So what is the Gulu Chairman saying? Is he mad,” Olanya asked.
According to Olanya, MPs already up to 14 million shillings a month in taxes.
“Some pay up to Shs 14m and some go back home with nothing,” Olanya said.
A number of civil societies in Uganda are up in arms against the MPs since they amended the income tax law to exempt themselves from paying taxes.
The civil society organisations have urged the president not to assent to the bill passed by MPs as it will cause Uganda a loss of more than Shs40b in revenue.