Kampala: Budadiri County East Member of Parliament, Hon. Eng. Julius Nakiyi Muntu, has challenged the Government over the 30 percent taxation imposed on district councillors, questioning the evidence used to determine their taxable income.
Speaking on the floor of Parliament, Nakiyi said the issue was related to a question raised by another legislator concerning taxation of district councillors and urged the Minister responsible for Economic Affairs to provide clarification to the House.
The legislator questioned the basis for taxing councillors at a rate of 30 percent, arguing that the policy should take into account the actual income earned by the councillors rather than relying on assumptions about their earnings.
Nakiyi asked the Government to provide evidence showing that district councillors across Uganda earn incomes high enough to justify subjecting them to the 30 percent tax rate.
He specifically questioned the basis for assuming that councillors earn up to Shs10 million per month, asking what evidence the Government has to support such a figure.
The Budadiri County East MP also drew attention to the allowance received by councillors, questioning whether the Government had established that they have another primary source of income apart from the Shs250,000 they receive as councillors.
Nakiyi argued that taxation policies affecting local government leaders should be based on accurate information about their actual earnings and financial circumstances, particularly where the income in question is relatively limited.
He called for clarity from the responsible ministry on how the taxable income of district councillors is determined and what information informed the decision to apply the 30 percent rate.
His intervention has brought renewed attention to the financial realities of district councillors and the need for taxation measures to be based on verifiable income information, with Nakiyi urging Government to explain the basis of the tax before the affected leaders are subjected to a burden that may not reflect their actual earnings.
