Government Wants a 426BN Tax Write-Off
MPs have been confounded by a request from the finance ministry to write off all unpaid government taxes.
While presenting tax measures for the FY 2019/2020, the state minister for planning David Bahati laid the request before MPs on the finance committee this morning.
He argued that the same request had been made during the budgeting process last year but MPs had rejected it and had also declined to appropriate funds for the tax arrears. He stated that the most logical option was to write off the tax arrears.
Bahati requests that all government tax arrears as at June 2019 be written off.
According to Bahati the unpaid taxes amounting to 426bn shs arose as a result of government’s obligation to pay taxes on donor funded projects that require counterpart funding from government.
The Mitooma woman MP Jovah Kameteeka argues that writing off the tax arrears is not the solution, she states that government should lead by example and pay its taxes.