SACCOs in western Uganda Oppose Proposed Income Tax

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SACCOs in western Uganda Oppose Proposed Income Tax

Over 300 leaders of saving and Cooperative Societies Organizations (SACCO) in Western Uganda have protested government move to re-introduce income tax on these institutions.

This was during a consultative meeting to implement and lobby support for regulation and taxation of SACCOs organized by Uganda Cooperative Savings and Credit Union in Mbarara town today.

The union Chief Executive Officer Sylvester Ndiromukama said in 2017 government passed a resolution to exempt SACCOs from income tax for 10 years which helped them to mobilize more members and savings thus promoting financial inclusion.

He said SACCOs have significantly contributed to employment, wealth creation, growth and increased taxable income and that reinstating this tax will frustrate the gains already made.

Ndiromukama said what is so annoying that among all groups of exemptions government had announced it’s only SACCOs that they want tax to be reinstated barely after a year after this decision was made.

Mbarara district LC5 Vice Chairperson also a member of Nyarubanga SACCO in Mbarara Godfrey Baryomunsi said taxing SACCOs the burden will be put to the local person whose saving culture had improved and in the end people will go back to keeping money in pots and mattresses, a move he said will not only crop insecurity but also detrimental to economic development.

There is already a petition in parliament before the finance committee lobbying parliament to quash the move by government to re-introduce this tax.

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