Savings and Credit Co-operative Societies in Kabale want Uganda Revenue Authority (URA) to exempt them from certain taxes in order to enable them develop faster.
All Savings and Credit Cooperative Societies in Uganda are mandated to pay a 30% corporation tax, 15% withholding tax on members’ savings interest, 15% on dividends, shillings 10,000 on loan disbursed above three million shillings among others.
During the annual general meeting of Lyamujungu Cooperative Financial Services Limited held on Saturday at the main offices in Kizinga parish Kaharo Sub County, the SACCO chairperson Board of Directors, Dinah Turyatunga noted concernedly that they are meeting a lot of expenses.
Turyatunga says that Lyamujungu SACCO is one of the most known SACCOs in Uganda and would wish to expand further, but not with the current tax bill.
He pointed out for instance that paid out up to Shs. 46 million in taxes in the year 2016 alone.
Turyatunga appealed to URA to relieve them of some of the taxes, so that the SACCO can move faster on its mission of providing high quality financial products and services to its members cost effectively.
Speaking as the guest of honor, the Executive Director of Uganda Cooperative Central Financial Services Patrick Bakunda admitted the increasing tax expenses on SACCOs.
He revealed that as a member of the tax committee, they have already presented a memorandum to parliament to look into the reduction of taxes on SACCOs.