Opposition Uganda Peoples’ Congress (UPC) have said they are in full support of a ploy by members of parliament to exempt themselves from paying Income tax.
The opposition party yesterday also charged at media houses for ‘deliberately refusing to fully explain the circumstances surrounding the issue.’
The UPC National Chairman, Lawrence Engirot Okae told the media during the party’s weekly press briefing that the taxes in question are based on allowances which are exempt from taxation by any reasonable reckoning.
“UPC as the party of workers finds the misrepresentation of these allowances a danger to all workers for whom allowances play a crucial role in enabling them to perform their duties. Many workers are assisted with travel and meal allowances by employers,” Okae said.
“The suggestion that these should now be subject to taxation cannot be taken seriously if thought about with a clear mind,” Okae added.
Members who have lately come under immense attack from the public, civil society and government, this week threatened not to pass the 2016/17 National Budget if government insists on taxing their emoluments.
UPC’s Okae told press yesterday that the debate on fair taxation is welcome, but should be held within the purview of working to build the economy that rewards everyone.
The issue was raised on the floor of parliament on April, 14, 2016, during the consideration and passing of the Income Tax Amendment Bill, 2016 and the MPs swiftly and explicitly took their allowances out of the tax bracket.
The move by parliamentarians to amend the Income Tax Act’s Sec 21 has since been sternly criticized and labeled as betrayal to the electorate.
President Yoweri Museveni was this week urged not to sign this amended law.