Tax that singles out a few citizens is very unfair
Nov 04, 2010
EDITOR: DP presidential candidate Norbert Mao, recently said he would scrap pay as you earn (PAYE) tax for people earning less than sh400,000. This is a very good idea.
Emmanuel Curuma
Hoima
EDITOR: DP presidential candidate Norbert Mao, recently said he would scrap pay as you earn (PAYE) tax for people earning less than sh400,000. This is a very good idea.
Although graduated tax was scrapped it was brought back in another form as local service tax and is exclusively paid by a small number of employees who represent only about 4% of Ugandans. It is the same employees burdened with a 30% PAYE tax! Mao is getting closer to our hearts by beginning to look at real issues.
But he should come out to say this direct PAYE tax should be replaced by indirect taxes that all consumers should pay. By the time an average employee come to the end of the month, he has paid about 50-60% of his income on taxes! I agree there is need to pay for health, defence and education.
But why have so many new unnecessary districts, and massive Parliament? We also have cultural leaders to take care of although not every area in Uganda has kings. Government expenditure could drastically be reduced by reducing the number of districts which would in turn reduce the number of MPs.
Attention should strategically be focused on taxes like VAT levied on corporations, tourism and other taxes or revenues that do not affect direct incomes of a few citizens.
PAYE is definitely neither a fair source of revenue nor will it miraculously transform our country from a Third World into a developed one. What we need is strategic taxation.
PAYE is imposed on a small number (4%) of Ugandans who contribute a whopping 16% to the treasury! Why should 4% be singled out for this burden while some 15 million walk free? This is unjustifiable and inexplicable. PAYE should be scrapped forthwith.
Hoima
EDITOR: DP presidential candidate Norbert Mao, recently said he would scrap pay as you earn (PAYE) tax for people earning less than sh400,000. This is a very good idea.
Although graduated tax was scrapped it was brought back in another form as local service tax and is exclusively paid by a small number of employees who represent only about 4% of Ugandans. It is the same employees burdened with a 30% PAYE tax! Mao is getting closer to our hearts by beginning to look at real issues.
But he should come out to say this direct PAYE tax should be replaced by indirect taxes that all consumers should pay. By the time an average employee come to the end of the month, he has paid about 50-60% of his income on taxes! I agree there is need to pay for health, defence and education.
But why have so many new unnecessary districts, and massive Parliament? We also have cultural leaders to take care of although not every area in Uganda has kings. Government expenditure could drastically be reduced by reducing the number of districts which would in turn reduce the number of MPs.
Attention should strategically be focused on taxes like VAT levied on corporations, tourism and other taxes or revenues that do not affect direct incomes of a few citizens.
PAYE is definitely neither a fair source of revenue nor will it miraculously transform our country from a Third World into a developed one. What we need is strategic taxation.
PAYE is imposed on a small number (4%) of Ugandans who contribute a whopping 16% to the treasury! Why should 4% be singled out for this burden while some 15 million walk free? This is unjustifiable and inexplicable. PAYE should be scrapped forthwith.