Graduated tax gone forever â€" Minister
Aug 29, 2011
THE Government has no intention of re-introducing graduated tax, the Minister of Local Government, Adolf Mwesige, has said.
By Joyce Namutebi
and Catherine Bekunda
THE Government has no intention of re-introducing graduated tax, the Minister of Local Government, Adolf Mwesige, has said.
“The Government had good reasons to abolish it. It can not revive it,†Mwesige told Parliament on Thursday.
He said he does not support re-introduction of the tax and called for the support of Parliament in ensuring that graduated tax compensation to local governments continues.
Mwesigye was responding to issues raised by the committee on public service and Local Government, where some MPs were calling for re-instatement of G-tax.
The MPs said the abolition of the tax had led to revenue shortfall and constrained operations of local governments.
The tax was abolished in 2002 following complaints about the manner in which it was collected.
Following its abolition, the Government replaced it with local service tax and an annual grant of sh45b G-Tax compensation to the Local Governments.
On creation of new districts, Mwesige explained that the proposal to create them has to come from the President.
He said the Government was ready to fund the districts.
He, however, agreed with the committee that all subsequent creation of new districts has to be rationalised.
Mwesige revealed that the ministry was carrying out a comprehensive study on the criteria for the creation of new cities.
On the outcry that the election of LC1 and 11 was long overdue, he said this was the mandate of the Electoral Commission.
Mwesige further explained that the reason the elections have not been held was due to political and financial constraints.
He said the Government was ready to hold the elections in 2006, but citizens led by Rubaramira Ruranga went to court and the case dragged on for three years.
Court, he said, decided that the Government had to review the law to conform to the multiparty political system.
The problem now, he said, was lack of funds and if the Government fails to get the money, he would see whether the law could be reviewed to make the elections cheaper. He said that the commission requires sh98b to conduct the elections.
and Catherine Bekunda
THE Government has no intention of re-introducing graduated tax, the Minister of Local Government, Adolf Mwesige, has said.
“The Government had good reasons to abolish it. It can not revive it,†Mwesige told Parliament on Thursday.
He said he does not support re-introduction of the tax and called for the support of Parliament in ensuring that graduated tax compensation to local governments continues.
Mwesigye was responding to issues raised by the committee on public service and Local Government, where some MPs were calling for re-instatement of G-tax.
The MPs said the abolition of the tax had led to revenue shortfall and constrained operations of local governments.
The tax was abolished in 2002 following complaints about the manner in which it was collected.
Following its abolition, the Government replaced it with local service tax and an annual grant of sh45b G-Tax compensation to the Local Governments.
On creation of new districts, Mwesige explained that the proposal to create them has to come from the President.
He said the Government was ready to fund the districts.
He, however, agreed with the committee that all subsequent creation of new districts has to be rationalised.
Mwesige revealed that the ministry was carrying out a comprehensive study on the criteria for the creation of new cities.
On the outcry that the election of LC1 and 11 was long overdue, he said this was the mandate of the Electoral Commission.
Mwesige further explained that the reason the elections have not been held was due to political and financial constraints.
He said the Government was ready to hold the elections in 2006, but citizens led by Rubaramira Ruranga went to court and the case dragged on for three years.
Court, he said, decided that the Government had to review the law to conform to the multiparty political system.
The problem now, he said, was lack of funds and if the Government fails to get the money, he would see whether the law could be reviewed to make the elections cheaper. He said that the commission requires sh98b to conduct the elections.