Member of Parliament for Kole North, Dr. Samuel Opio Acuti, on Thursday, October 15 raised a matter of national importance regarding the 30% deduction from the shs250,000 monthly pay of district councillors.

While raising the matter in Parliament, he cited Kole and other districts where district councillors earn shs250,000 monthly. This pay is subject to a 30% tax deduction, resulting in a take-home pay of shs175,000.

The PAYE threshold currently applies to persons earning shs335,000 and above. Below this pay, such as that of the district councillors, should not be subjected to any tax deduction.

Additionally, he cited the sub-county councillors’ pay of shs35,000 per month and the LC1s’ pay of shs10,000, which are below the PAYE threshold and are not subject to any deduction.

MP Dr Acuti questioned why there was a selective application of the taxation and further queried why district councillors’ monthly meagre salaries of shs250,000 in most districts would be subjected to this deduction, many of whom have no other source of employment.

In his prayers to the Speaker, Kole North MP asked the Minister of Finance to clarify the deductions and further called for a waiver of this tax based on the PAYE exemption category.

In his response, Minister of State for Planning and Economic Development, Amos Lugolobi, indicated that they had received similar concerns during countrywide consultations during the budget conference.

He stated that the tax deduction was based on the tax laws and the district councillors’ categorisation of their pay.

Lugolobi indicated that they were consulting further and if any changes were to be made, they would take effect in the coming financial year through amendment of the applicable taxation laws.