On Monday, President Yoweri Museveni rejected the controversial Income Tax Amendment Bill 2016 and declined to sign it into law.
The bill that the MPs passed recently exempts them from paying income tax on their allowances such as mileage and constituency facilitation.
The president's decision to reject the proposed amendments to the income tax act has caused some disconcert among the MPs and many of them are now looking for ways of getting what they want while taking into consideration the president's objections.
Henry Musasizi, Rubanda East Member of Parliament, who moved the now controversial clause to the Income Tax Amendment Bill 2016 says debate on the bill will be the first agenda of the 10th Parliament, since it has an implication on the budget.
However, Buzaaya MP Isaac Musumba says since the majority of members of the 10th Parliament are new entrants, the bill that exempted MPs from paying income tax on their mileage and other allowances, is likely to face challenges.
On Monday, President Museveni wrote to Speaker of Parliament Rebecca Kadaga describing the decision by Parliament to grant themselves tax exemption as not only injurious to national revenue collection efforts, but also politically and morally incorrect. He declined to sign the bill into law.The President also pointed it out that small income earners like teachers, nurses and other public employees cannot be expected to pay income tax on their consolidated little salaries and yet Members of Parliament who earn considerably well, are exempted.
The Civil Society Budget Advocacy Group has applauded the president’s move. They also want Article 85 of the constitution that gives powers to members of parliament to determine their salaries amended.
Buliisa MP Stephen Mukitale disagrees and says the exemption is meant to improve service delivery by the MPs.