Scrap PAYE, say workers leaders
Jun 19, 2007
THE Workers’ union representatives have asked that Pay as You Earn (PAYE) be abolished and replaced with the new local government service tax.<br>Addressing journalists at parliament yesterday, the representatives, led by Workers’ MP Sam Lyomoki, demanded that the government either reviews the
By Mary Karugaba and Apollo Mubiru
THE Workers’ union representatives have asked that Pay as You Earn (PAYE) be abolished and replaced with the new local government service tax.
Addressing journalists at parliament yesterday, the representatives, led by Workers’ MP Sam Lyomoki, demanded that the government either reviews the new tax or remits PAYE deductions directly to local governments.
The meeting was attended by the general secretaries of the National Local Government Workers’ Union Hassan Mudiba and that of the Theatrical Entertainment and Allied Workers, Ezra Kanyana.
“The Government should either have PAYE deduction remitted to local governments or abolish PAYE and institute the local government tax. In other words, there should be rationalisation of the already existing taxation instead of introducing a new tax,†Lyomoki said.
Finance minister Dr. Ezra Suruma, while reading the budget last week, announced a new tax, the Local Service Tax, on wealth and incomes of workers and professionals, to replace Graduated Tax.
The tax will be levied on all employees, self-employed and practicising professionals, artisans, business people and commercial farmers. Those exempted are soldiers, the Police, local defence guards and Prisons officials, as well as the unemployed, peasants and people unable to earn a minimum income.
“This tax is a double tax for salaried workers who are already paying PAYE. This tax (PAYE) is already unfair in terms of taxing all employment income and gross emoluments of workers regardless of whether such entitlements are for duty facilitation,†Lyomoki argued.
He said there is need to raise the threshold so as to safeguard the very low salary earners who cannot afford a livelihood and savings like those earning sh130,000 to sh235,000.
They threatened to hold a massive demonstration over the matter.
“If Government insists, then a series of nationwide strikes shall be declared and if they fail, then a workers’ resistance shall be declared against the vultures,†Lyomoki said.
THE Workers’ union representatives have asked that Pay as You Earn (PAYE) be abolished and replaced with the new local government service tax.
Addressing journalists at parliament yesterday, the representatives, led by Workers’ MP Sam Lyomoki, demanded that the government either reviews the new tax or remits PAYE deductions directly to local governments.
The meeting was attended by the general secretaries of the National Local Government Workers’ Union Hassan Mudiba and that of the Theatrical Entertainment and Allied Workers, Ezra Kanyana.
“The Government should either have PAYE deduction remitted to local governments or abolish PAYE and institute the local government tax. In other words, there should be rationalisation of the already existing taxation instead of introducing a new tax,†Lyomoki said.
Finance minister Dr. Ezra Suruma, while reading the budget last week, announced a new tax, the Local Service Tax, on wealth and incomes of workers and professionals, to replace Graduated Tax.
The tax will be levied on all employees, self-employed and practicising professionals, artisans, business people and commercial farmers. Those exempted are soldiers, the Police, local defence guards and Prisons officials, as well as the unemployed, peasants and people unable to earn a minimum income.
“This tax is a double tax for salaried workers who are already paying PAYE. This tax (PAYE) is already unfair in terms of taxing all employment income and gross emoluments of workers regardless of whether such entitlements are for duty facilitation,†Lyomoki argued.
He said there is need to raise the threshold so as to safeguard the very low salary earners who cannot afford a livelihood and savings like those earning sh130,000 to sh235,000.
They threatened to hold a massive demonstration over the matter.
“If Government insists, then a series of nationwide strikes shall be declared and if they fail, then a workers’ resistance shall be declared against the vultures,†Lyomoki said.