MPs reject proposal allowing minister waive tax for Investors

Members of Parliament removed the minister of finance powers to waive tax to individual investors .

The move came after the finance committee chair Henry Musasizi presented a report on the tax procedures code bill 2018.

The proposed bill among other things seeks to amend the act to provide for due dates for filing returns under the Lotteries and Gaming Act, 2016; to provide for the Minister to pay taxes on behalf of a person and to waive all unpaid taxes due and unpaid by government as at 30th June 2018, and also provide for electronic receipting and invoicing among others.

Musasizi said it is setting a bad precedence to allow a minister to pay tax for whoever they wish, or even exempt tax for specific companies and individuals.

“The Minister of Government for that matter should not be paying for anyone especially those who are earning an income and profits,” he said.

Although according to State Minister for Finance in charge of planning David Bahati, government had entered into Memoranda of Understanding with some companies on incentives and this should be made to continue, the legislators rejected this.

He says companies like NYTIL and Palm oil working in Kalangala have greatly supported the community and they should be supported.

Busiro East MP, Medard  Sseggona said government has given several incentives with the aim of attracting investors but this has not been helpful. He says the blanket power given to the Minister would be misused.

“Parliament is the only one with the authority to waive taxes, but lets not give this to the minister entire as this could be misused” he said.

The MPs later rejected the proposal of the Minister.