MPs evading taxes is deplorable - Activists
Apr 17, 2016
"If this is passed it shows that the MPs are not patriotic"
Anti- Corruption Coalition Uganda executive director Cissy Kagaba has warned Members of Parliament against a move to exempt themselves from paying Income Tax accrued from their allowances, saying the action is deplorable.
The MPs who are usually divided when it comes to agreeing on lawmaking put their differences aside on Thursday evening and passed the Income Tax Amendment Bill, 2016 and introduced a section that removes their allowances from the tax bracket.
She made the warning during the Launch of ACCU 2016 report on compliance of Ministries Department and Agencies to the Auditors General's Audit report at Hotel Africana in Kampala on Friday. ACCU prepared the report with the support from Democratic Governance and Facility (DGF).
"If this is passed it shows that the MPs are not patriotic and do not want Uganda to develop because they will be consuming taxes paid by other people yet their allowances are not deducted," Kagaba said.
According to the report, Government has lost over sh700b from five ministries in wasteful expenditure in the last four years. The money was lost in financial years 2010/ 11, 2011/12, 2012/13 and 2013 /14.
The Ministries include Education and Sports, Health, Agriculture and Fisheries Works and Transport and Public Sector Management.
Anti- Corruption Coalition Uganda executive director Cissy Kagaba.
The report states that the monies were lost through excess payment for tax commitments of the previous years, mischarge of expenditure, Advances to personal accounts, un-accounted for advances, consolidated allowances, wasteful expenditure, doubtful contract award and unapproved procurement expenditure.
The report indicates that the failure of parliament to debate and consider any audit report on Central Government or agencies since the FY 2004/05 has created a backlog.
Kagaba recommended that Ministry of Finance, Planning and Economic Development adheres to sec 13 (11) (b) of the Public Finance Management (PFM) Act 2015 as amended, to ensure that treasury Memoranda are presented to parliament with the National budget.