By Sylvia Kugonza
Uganda Revenue Authority (URA) has hit back at a section of Kabarole district councilors who have been accusing the district of illegal deduction of their monthly allowances.
A section of councilors led by Karambi sub county councilor Joseph Mashuhuko recently stormed the radio stations in Fort Portal and accused the district leaders led by the Chief Administrative Officer Mr.Dunstan Balaba of deducting 30perecent of their allowances instead of the 10perecent.
Mashuhuko while on some radios said that he doubted the CAO when he landed on a letter written by him dated 18th April to the URA seeking for guidance on the deduction for the councilor’s taxes. He revealed that he was dragging the district to court.
But in a letter dated 20th April, this year addressed to the CAO signed by Precious Mutasingwa for Commissioner Domestic Taxes URA Kampala, copied to RDC, District chairperson, District Internal Auditor, instructs local governments to withhold the standard withholding amount from the allowances payable to councilors.
The letter states that in respect of whom no record available of their current employment, the district should deduct 30% on gross amount without allowing them the tax-free allowances (threshold) unless they have declared their employment details. This requires councilors to declare if councillorship is the only source of employment.
Source: www.mknewslink.com a greater western Uganda news website