The Leader of the Opposition in Parliament, Hon. Mathias Mpuuga has urged government to deliver on its promise to support ‘volunteer’ organizations whose works have transformed the people.

Mpuuga said institutions such as the Little Sisters of St Francis of Assisi Congregation which runs high performance schools like Mt. St. Mary’s College Namagunga and health facilities such as Nsambya Hospital deservesupport from government.

“When Covid-19 attacked us, I remember making a statement on the Floor of Parliament challenging ourselves to consider the humble works of these organizations. I still strongly suggest that government needs to move fast; volunteers like the Little Sisters Congregation need to benefit from the presence of a government,” Mpuuga said he said adding that, “for instance, why would they be suffering without expert health workers? Government should be seconding the expert health workers to the congregation’s hospitals and pay them,” said Mpuuga.

Mpuuga made this call at the launch of the centenary celebrations of the congregation in Nkokonjeru, Buikwe district on Saturday, 07 May 2022.  The event was also aimed at fundraising for a building of 100 rooms in memory of the congregation’s founder, Mother Kevin Therese.

Speaking to the Vice President, Jessica Alupo who was present at the function as the chief guest, Mpuuga reiterated a promise made by the Prime Minister to extend financial support to volunteer organizations.

“When I gave the statement on this matter in Parliament, the response from the Prime Minister was that, ‘yes we are seriously considering it’. Today is the reminder to track the commitment from the Prime Minister,” he said.

Alupo promised to work with Mpuuga in mobilizing other legislators to support the cause in addition to a cash contribution of Shs30million she made towards the building.

“We shall go and discuss how to support these institutions in another forum. I can promise that I will work with you to mobilize our other colleagues because we know the 100 rooms need to be completed,” Alupo said.

Mpuuga also contributed Shs10 million on behalf of the office of Leader of the Opposition.  

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The Deputy Speaker of Parliament, Thomas Tayebwa, is perturbed by reports that Chief Administrative Officers (CAOs) are undermining the powers of district councils by submitting budgets to the finance ministry without scrutiny by the councils.

Tayebwa said he had received reports from district councillors and speakers revealing that the district budget proposals presented to Parliament were not scrutinised by their respective district councils.

“Yesterday, I had calls with speakers and councillors of some districts and they said they will be having council meetings by the end of May to approve their budget.  I wondered whose budgets local governments are going to present to the Ministry of Finance when we already have budget proposals,” said Tayebwa.

He added: “Parliament is considering the budget proposals and we already have consolidated budget proposals and even the Committee on Public Service and Local Government has already presented budgets of the local governments. So, now whose budgets are local governments going to scrutinise?”

Tayebwa made these remarks while chairing the plenary sitting on Thursday, 05 May 2022.

He warned that such a practice distorts the whole concept of decentralisation where districts are required to determine their funding priorities. “So where does this take us on issues of decentralisation? It is like waking up now to find that the finance ministry is already implementing the budget that we have not yet approved,” he said.

The Deputy Speaker pledged that Parliament will defend the powers of local governments in budget appropriation. “The way we protect our powers of appropriation is the same way we should protect those of local governments,” he said.

Hon. Raphael Magyezi, the local government minister has been summoned to explain to Parliament the budget process in local governments and why the CAOs are undermining the powers of district councils.

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Tax consultants have cautioned Parliament on the negative implications on the proposed rental income tax amendments for the Financial Year 2022/23.

The advisory was given by Joseph Okuja from Libra Advocates and Consultants at a meeting with Committee of Finance to elaborate the proposed income tax amendments proposed by government in the proposed budget on Thursday, 05 May 2022 at Parliament.

Okuja told the MPs that the proposed increment in the rental income tax is segregating individuals from companies putting it at 12 per cent up from 7.5 per cent for individuals and at 15 per cent after deducting expenses against the rental income for companies.

He said that the proposal undermines the current structure of income tax which is aimed at being progressive. This, he held, means that the more an individual earns the more they pay.

“In this amendment, rental tax for individuals is regressive setting the same percentage for all rental earners regardless of the amounts they make,” Okuja stated.

Okuja said that the amendment does away with a threshold on the rental income tax, putting small and big landlords at the same level of taxation.

“Before, the law exempted those earning less than Shs2.8 million annually before last year from rent which established the aforementioned figure as the threshold for rental income tax,” he added.

Okuja noted that the tax also serves unfairly to the companies that are landlords leveling a higher tax on them because it disregards the fact that the owners or directors of the companies are individuals who are to meet the expense eventually.

He also pointed out that the law creates a loophole of tax avoidance for partnerships and trustees who own rental property by not catering for them.

“If I co-own a property with someone else that is rented out, we neither fall under the category of an individual nor a company and therefore, we do not have to pay rental tax,” he added.

Hon. Basil Bataringaya (NRM, Kashari North County) asked the consultants for their view on the best course of action in considering the amendment.

“How best should we approach the amendment to see that the country still makes revenue from rental income tax while encouraging individuals to continue to invest in housing and commercial buildings to solve the housing problem?,” he asked.

Okuja responded that the law should be equitable and progressive charging the same rate to all groups invested and dependent on their earnings.

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