In Summary
Refuted. A State House official has refuted claims by the lawmakers that President Museveni had given tacit approval for their tax exemption deal
State House yesterday poured cold water on MPs’ tax exemption deal, warning politicians that any attempts to block the 2016/17 budget will be considered “treasonable”.
A senior official told Daily Monitor that the President “cannot not be held at ransom” by the lawmakers and refuted claims that he had given tacit approval for this deal.
The Presidential Press Secretary, Ms Linda Nabusayi, also challenged MPs who were claiming that President Museveni knew about the disputed tax exemption deal that resulted in the passing of the Income Tax (Amendments) Bill, 2016, to produce evidence.
“The President is going to scrutinise the Income Tax (Amendments) Bill [passed by Parliament] and if it’s a bad law, he will definitely not sign it,” Ms Nabusayi said. “The MPs are talking irresponsibly. Are they passing the Budget for the President’s personal use or for the country to manage its affairs, including serving the people who elected these MPs?”
“There is no proof that the President endorsed their plan. This is spooky, if MPs think they have a good Bill why do they threaten the lives of Ugandans by threatening not to pass the Budget? The budget is for service delivery,” Ms Nabusayi said.
Mr Henry Musasizi (Rubanda East), who moved the disputed amendment, and Mr Peter Ogwang (Youth Eastern) on Tuesday put the country on notice that if President Museveni does not approve their tax exemption law, Parliament will retaliate by not passing the 2016/17 Budget.
The lawmakers who defended their tax exemption as “justified and a “less expensive option” to the taxpayer, warned civil servants and civil society people, who were criticising them, that when the House begins scrutinising the Auditor General’s reports on accountability for public funds, “no stone will be left unturned”.
The MPs also indicated that even if the President does not sign the Bill, the Bill will still revert to the same people in Parliament and MPs will pass it “without fear of favour”. The Constitution allows Parliament to pass any law with or without the President’s signature.
Although Mr Musasizi and Mr Ogwang insisted that it’s within their legislative ambit to amend the Income Tax law, the President’s spokesperson, however, reminded MPs that, “What they are uttering (in reference to blocking the Budget) is treasonable to say the least.” “The electorate are watching and listening. The MPs should be decent enough on the way they talk,” she said.
The Musasizi amendment to Income Tax law, seeks to protect members allowances from income tax and limit the tax payable on the salary. On Tuesday, Mr Musasizi also alleged that his amendment was the result of an agreed position between the President and ruling party MPs in Kyankwanzi (where the NRM held its retreat for the new MPs a few weeks ago).
“We agreed with the President that we are not going to increase our salary and benefits and that tax on our allowances should be lifted to maintain the status-quo. We expect the President to sign the Bill by the end of this week or else we cannot proceed with the Budget until we are sure that our amendment has been concluded,” he said.
State House, however, dismisses Mr Musasizi’s claim that the President knew about MPs’ tax exemption plans and derided the insinuation that this was an agreed position in Kyankwanzi. In Kyankwanazi, the President reportedly cautioned the new MPs against increasing their salaries at the expense of boosting household incomes through wealth creation.
Civil society organisations have since embarked on a nationwide campaign to raise five million signatures for a formal petition to the President, requesting him not to sign the Bill in public interest.
ymugerwa@ug.nationmedia.com
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