KAMPALA– Members of Parliament [MPs] on Thursday passed a motion urging the government to develop a comprehensive policy to streamline tax collection processes in the country.
At a plenary sitting chaired by the Deputy Speaker, Thomas Tayebwa, the Buyamba County MP, Gyaviira Ssemwanga, was concerned that the domestic revenue mobilisation strategy developed by the finance ministry in 2020 indicates that there is no documented taxation policy for Uganda.
“Government should develop and publicise a comprehensive taxation policy document for Uganda, based on the principles of good taxation,” he said.
Ssemwanga further urged the Ministry of Finance, Planning and Economic Development (MOFPED) to create a framework to ensure effective implementation of the domestic revenue mobilisation strategy.
“The absence of a documented taxation policy leaves government with an unfettered discretion on what taxes to levy, what amounts, when to levy and on whom, which leads to an unfair taxation system,” he added.
The only option, the MP said, was for government to develop the tax policy to save the country from over borrowing.
Sheema Municipality MP, Dickson Kateshumbwa said that the first tax legislation was in 1919 and since then, the country has had tax laws that are not informed by a comprehensive tax policy.
“Taxation is the only practical means of raising revenue that finances goods and services that we all demand. Taxation is more than revenue, it is a tool for development,” said Kateshumbwa who worked with Uganda Revenue Authority [URA].
“We need to take decisions on tax matters following a policy not depending on a level of negotiation where someone approaches a certain office. This will help us achieve the principles that we need and also promote investment in this country,” he said.
Bugiri Municipality MP Asuman Basalirwa, stressed the importance of having polices in place, arguing that a good law is usually preceded by a policy, even though he said many laws of taxation kin the country remain hanging.
“We do not have a policy on tax exemptions in this country. You do not know who and how to access a tax exemption. The finance ministry should come up with a comprehensive evaluation of benefits of tax exemptions for the last 10 years and review the existing exemptions,” Basalirwa said.
His counterpart, Kilak Country legislator Gilbert Olanya was concerned that without a tax policy, the URA is taking advantage of the innocent citizens to overtax them.
While Mbarara City Woman Representative,Rita Atukwasa, argued that with the policy in place, government will not suffer with “bad decisions” like the contentious coffee deal with Uganda Vinci Coffee Company (UVCC).
“If we have a comprehensive tax policy then the discriminatory tendencies in taxation and weavers would be done away with. We could also run away from monopolies that are not good for the small business,” Atukwasa said.
The Opposition Chief Whip and Manjiya County MP, John Baptist Nambeshe, said government was weak in implementing policies.
“There is a serious government weakness in implementing documents that are developed. Currently, we have the Domestic Revenue Mobilisation Strategy, which is very good, well documented but not implemented,” Nambeshe said.
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