“I am going to give an instruction for URA not to deduct allowances of councillors,” Musasizi told Parliament.
Parliament has secured a commitment from the Government to halt the 30% tax deductions imposed on district councillors’ allowances, following concerns raised by legislators over the legality and financial impact of the levy.
Finance Minister Henry Musasizi made the commitment while responding to MPs who questioned the Uganda Revenue Authority’s (URA) decision to deduct tax from the payments, arguing that the authority was misinterpreting the law.
Musasizi said most councillors depend entirely on these allowances to meet their personal and family needs, yet the amounts are already too small to sustain them.
He noted that some councillors were even demanding an increase in their allowances, making the 30% tax deduction an additional financial burden.
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“I am going to give an instruction for URA not to deduct allowances of councillors,” Musasizi told Parliament.
His assurance appeared to settle the matter, with Speaker Jacob Marksons Oboth welcoming the announcement before proceeding to the next item on the parliamentary agenda.
“That is what the Honourable Members were waiting for,” Oboth responded.
The proposed directive is expected to provide relief to district councillors who have been losing 30% of their allowances to tax deductions.
