Education Politics

SACCOS Protest Taxation as Unfair

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By APN Reporter

Mbarara

Members and leaders of various savings and credit corporative societies in western region are protesting the proposed decision to slap taxes on the savings and credit corporative organizations.

The proposal is set to be rolled out in the 2018/2019 financial year.

Johnbosco Abaho the general Manager for Rukiga SACCO says that the government is trying to exhibit double standards by changing its stand of not taxing the SACCO’S barely a year after the president revealed that they would not be subjected taxes for a period of at least ten years.

He further reveals that the decision is not in line with encouraging the locals to save since the charges aimed at meeting the taxes will push the away and hence resorting to other saving options such as keeping money in their homesteads which he describes as un safe and dangerous.

Godfrey Baryomunsi the Mbarara district LC5 Vice Chairperson also a member of Nyarubanga SACCO in Mbarara district says that the move is un fair.

He says that the move will expose locals to risks of losing money to thieves since they will revert to keeping their money under mattresses.

Rev.Fr.Gaetano Batanyenda the chairperson for Rukiga SACCO in Kabale district says that the move is dangerous for the economy.

He says that wealthy and rich investors are given tax holidays while the poor Ugandans continue to face the tax burden.
He says that the decision by the government contravenes a presidential directive issued last year that all SACCOS should be exempted from taxes for the next 10 years to enable them settle and to act a move to encourage Ugandans to embrace a saving culture.