MP Henry Musasizi of Rubanda East

Some members of parliament say attempts by the Ministry of Finance Permanent Secretary Keith Muhakanizi to communicate the government position on MPs’ tax exemption as negative are false because the NRM MPs agreed on that matter while at Kyankwanzi retreat. The MPs have also threatened that if the president does not assent to the tax income bill they will not pass the budget which is supposed to be passed by May 31st.

Addressing a news conference at parliament, MPs Henry Musasizi of Rubanda East and Peter Ogwang of Youth eastern said the president asked NRM MPs not to increase their salaries and allowances while in Kyankwanzi and they agreed on condition that they will be exempted from paying taxes. The MPs also threatened to rally their colleagues not to pass the budget should the president decline to assent to the bill. Their concerns came after media reports that the government rejected MPs’ tax exemption.

MP Musasizi who is also a member on the Parliamentary committee on finance that scrutinized the income tax bill before the House approval says that it’s a disappointed by the utterances of Muhakanizi whom he says is usurping powers of the minister to communicate the position of government. He said that Muhakanizi should go slow on MPs over taxes ,adding that they will expose him over his dirty deals. Musazizi said that the allowances are used to maintain their constituencies, buy fuel, pay their drivers and facilitate meetings in their constituencies among other responsibilities.

MP Ogwang who is also the vice chairperson of the NRM caucus said that it was unfortunate for the Ministry of Finance PS to mix his views with those of the ministry well knowing that MPs, unlike civil servants, pay their drivers, researchers, campaigners and others which to him is enough tax to be paid by a member of parliament. He warns civil society against their move to block MPs from being exempted from paying taxes on allowances.

The development comes  after Justice Henry Adonyo of the Commercial Court ordered that MPs’ allowances, including mileage and constituency allowances, sitting allowances for committee to be taxed.