We shall turn classrooms into lodges, warehouses

By Francis Emorut      

Private school owners have threatened that if their plight is not addressed they will be forced to turn classrooms into lodges and warehouses.

The concern was raised during a dialogue on taxation in education sector where private school owners tasked the senior education officer in the ministry of education, science technology and sports, George Mukose to explain taxes levied on them saying it is crippling their operations.
 
"If the current circumstances continue where our hands are tied we shall be left with no choice but to turn schools to warehouses and into lodging facilities," Dr. Lawrence Bategeka, the director of Mandela Secondary School, Hoima said.

He pointed out that taxes were a burden to school owners and it would erode the quality of education.

"Taxation is adversely affecting us and pulling down the entire education sector as students from Kenya and Tanzania do not come in big numbers as it used to be before taxes," Bategeka said. 

Hajat Zauja Ndifuna addressing participants during a dialogue on taxation in education sector in Kampala. Photo/ Francis Emorut

He urged government to allow them to operate as a business so that they can charge prices accordingly.

Government in last financial year 2014/2015 slapped taxes to private schools inform of income tax 30% and withholding tax 6%.

"Many private schools have suffered a setback because of the taxes introduced by government as many proprietors were inadequately prepared to handle them. They lacked budget skills needed to strengthen business management," Charles Ogeng, the chairperson of Coalition of Uganda Private School Teachers Association, said.

Hajat Zauja Ndifuna, the proprietor of Mbogo Schools, noted that the level of development of a country will depend on the quality of education in the country.

She explained that private schools are already paying taxes which she enumerated as statutory tax, pay as you earn, trading license, local service tax and ground rent tax as well as property rate tax.

Hajat Zauja Ndifuna (right) consults Richard Sewakiryanga, NGO Forum boss, during a dialogue on taxation in education sector in Kampala. Photo/Francis Emorut

"We already have these burdens and when you add income tax it has become bigger. Failure to pay the school is closed. Where are you going to get the next money without children?" Ndifuna asked.   

Sarah Bireete, a parent and also director of programmes at Centre for Constitutional Governance, informed the audience that it's the mandate of government to provide the right of education and private players only play the complementary role.

Bireete criticized government for favouring what she referred to as brief case investors who are privileged to get tax holidays.

Patrick Kaboyo, the executive director of Coalition of Uganda Private School Teachers Association, told the participants that taxation policy was important to help school proprietors to identify opportunities and challenges that would inform sector reforms in the education.

Responding to the school owners' concerns, Mukose noted that tax was a law passed by Parliament and there was nothing much he could offer.

"Taxation is law. There is no negotiation about it," Mukose said.

"Law is law and passed by Parliament. We can't change it unless by repealing."

The senior education officer advised proprietors of private schools to develop a culture of keeping records so that URA officials can assess them accordingly.  

"It's not the ministry of education collecting taxes it is Uganda Revenue Authority (URA)," Mukose stated.