SACCOS petition over taxes
Apr 12, 2009
Members of Savings and Credit Cooperative Organisations (SACCOs) have asked the Government to abolish taxes levied on the cooperatives.
By Chris Ahimbisibwe
Members of Savings and Credit Cooperative Organisations (SACCOs) have asked the Government to abolish taxes levied on the cooperatives.
An official from the Uganda Cooperative Savings and Credit Union said the Prosperity-for-All programme would fail unless Parliament stopped the Uganda Revenue Authority from taxing the SACCOs.
The credit union’s financial extension worker for Bushenyi district, Immaculate Katukwasa, said the revenue authority wanted to encroach on members’ savings and profits which she said was being unfair to the institutions.
Katukwasa said the cooperatives were the core implementers of the Prosperity-for-All programme.
She was addressing members of Kyamuhunga People’s Bank in Bushenyi during their annual general meeting on Friday.
Katukwasa said the Government needed the local financial institutions in the implementation of its development programmes.
The Peoples Bank manager, Harriet Muhabwa, said the tax body was always swift on taxing credit institutions.
“Whenever officials from the tax authority hear about our profits, they come rushing to charge us.
“Even on the members’ shares, they want revenue,†Muhabwa said.
The chairman of the local bank, Yorokam Batuna, said despite the increased demand for loans, inadequate capital was a major challenge for SACCOS.
Batuna said the poor loan repayment and savings culture among the members also affected the growth of the institution.
The members recommended that loan defaulters should be arrested and the money they borrowed recovered.
Members of Savings and Credit Cooperative Organisations (SACCOs) have asked the Government to abolish taxes levied on the cooperatives.
An official from the Uganda Cooperative Savings and Credit Union said the Prosperity-for-All programme would fail unless Parliament stopped the Uganda Revenue Authority from taxing the SACCOs.
The credit union’s financial extension worker for Bushenyi district, Immaculate Katukwasa, said the revenue authority wanted to encroach on members’ savings and profits which she said was being unfair to the institutions.
Katukwasa said the cooperatives were the core implementers of the Prosperity-for-All programme.
She was addressing members of Kyamuhunga People’s Bank in Bushenyi during their annual general meeting on Friday.
Katukwasa said the Government needed the local financial institutions in the implementation of its development programmes.
The Peoples Bank manager, Harriet Muhabwa, said the tax body was always swift on taxing credit institutions.
“Whenever officials from the tax authority hear about our profits, they come rushing to charge us.
“Even on the members’ shares, they want revenue,†Muhabwa said.
The chairman of the local bank, Yorokam Batuna, said despite the increased demand for loans, inadequate capital was a major challenge for SACCOS.
Batuna said the poor loan repayment and savings culture among the members also affected the growth of the institution.
The members recommended that loan defaulters should be arrested and the money they borrowed recovered.