President Yoweri Museveni

President Yoweri Museveni directed that all taxes levied on Savings and Credit Cooperative Societies (SACCOS), especially on the dividends of the members, should be abolished to promote the saving culture and avoid double taxation. This was revealed by the Prime Minister Dr Ruhakana Rugunda who represented him at the celebrations to mark the 93rd International Cooperatives day at Kyanamira grounds in Kabale District on Saturday.

According to Uganda Cooperative Savings and Credit Union Limited (UCSCU) a SACCO is an acronym is owned, governed and managed by its members who have the same common bond: they may be working for the same employer, belonging to the same church, labour union, social fraternity or living/working in the same community; SACCOs are economic institutions doing business in order to grow, survive and become sustainable.

President Museveni in his message said cooperatives play an important role in poverty reduction adding that they also help to reduce inequality by empowering people and offering them a dignified and sustainable way to make a living. The President said Government will continue supporting cooperatives in the various sectors of the economy in order to spur economic development.  “Cooperatives are a strong pillar to Uganda’s agricultural sector which is the backbone of the economy,” said the President. Mr. Museveni added that cooperatives can succeed only if supported and sustained by good leadership adding that every co-operator must offer their best in the different areas of competency to support the growth of the cooperative movement in the country.

The Premier on behalf of the President inaugurated the construction of the 600 million banking hall for Lyamujungu Cooperative Financial services and also congratulated them upon reaching 30 years of service to the members and the community at large.