Not so long ago, a section of members of parliament threatened not to pass the 2016/17 financial year budget, unless President Museveni appends a signature on their infamous income tax amendment Bill.
The bill which favors members of parliament against paying taxes on their allowances caused a public outcry, with Ugandans begging the president not to ascent to it.
On Tuesday, Gen. Yoweri Museveni, who is set to take oath as president for the next five years to morrow, returned the Bill to parliament citing a number of glitches.
Museveni rejected the Income Tax (Amendment) bill 2016 in matter of Francis Byamugisha vs Attorney General, Parliamentary Commission & URA HCCS No 745 of 201.3 which resolved that all emoluments paid to MPs are subject to tax under the provisions of the Income Tax Act Cap 340.
President Museveni describes the decision taken by Parliament as one that does not promote good practice because it risks undermining the integrity of both the Courts and Parliament.
“The decision by Parliament has provoked public outrage and projected Government in bad light as not being sensitive to priorities of country and general economic condition of the citizenry. As principle, salaries for all employees were consolidated to minimize abuse which was rampart through disguise of salaries in form of allowances.”
He adds that; “The decision by Parliament to grant themselves a tax exemption status is therefore, is not only injurious to our revenue effort but it is also not politically and morally correct. Small income earners like teachers, nurses & other public employees cannot be expected to pay income tax on their consolidated meager salaries and yet Members of Parliament who earn considerably well are exempted.”
Museveni asked; “What moral authority can Parliament or Government have to encourage the public to comply with their tax obligations? When Members of Parliament have granted themselves a special status? This would tantamount to applying double standards.”
What next for Parliament?
The legislators had threatened to pass the Bill into law, once the president refuses to listen to their leas. Now, according to the law, when the president rejects a bill, the legislation is dead unless parliament takes action.
Parliament can override the rejection, and in doing so, passes the bill over the president's formal objection.
Overriding a presidential rejection requires a two-thirds majority vote of the members present and voting (in other words, those who are actually in the chamber rather than two-thirds of the total) in each chamber.
Ugandans are now jubilating at the president’s decision, but at any moment, parliament might decide otherwise, since it favors them alone not any other Ugandan workers.
