Govt To Tax MPs’ Car Allowance

The Government will not waive 30 percent income tax on legislators’ sh20m car allowance, state minister for finance Mwesigwa Rukutana said yesterday, reports Richard Mutumba. “Such an allowance is taxable. If the common person pays such a tax, why not a Member of Parliament?” he wondered. He was responding to protests by some MPs that it was unfair to tax the car allowances when the vehicles would also be taxed. The MPs said it was wrong for the Uganda Revenue Authority to tax the vehicle allowance because it was intended to benefit the people they represent in Parliament. The East African said yesterday that MPs have been pressing the government to waive the tax or spread it over 48 months. “This is a question of the law and the legislators should respect the law like any other member of the society,” Rukutana said. “URA is not against the idea of MPs paying the taxes in installments as long as the car allowances are also paid in installments,” said Christopher Kiwanuka Kaweesa, the acting commissioner for tax education. Two months ago, the MPs awarded themselves a sh4.5m salary and a sh20m car allowance. The URA is demanding sh6m in tax from the car allowance. Ends