Kadaga has told parliament today that the president assented to Income Amendment Bill 2016 into law but asked parliament to review clauses on oil production agreements.
Kadaga asked the Ministry of Energy to table fresh amendments before Parliament regarding that.
Museveni on November 23 this year returned the bill to parliament for the third time, and directed the House to amend clause 89G, to scrap income tax on oil production, fearing that it would undermine oil production.
However, the Speaker Rebecca Kadaga upon further scrutiny realized that the bill had already been ascented to much earlier, making it law and the President’s directive does not apply.
In February this year, the Commercial Court, ordered the Parliamentary Commission to deduct tax from MPs’ emoluments. Ms Kadaga had assured members that the Parliamentary Commission would appeal the judgement. The Appeal was filed on February 22. However before the appeal was heard, the MPs moved to protect their allowances as the Clerk To parliament Ms Jane Kibirige had advised. Some MPs complained to the Committee on Legal and Parliamentary Affairs that URA wanted Shs9m from each legislator in 9th Parliament and Shs10m for the MPs in the 10th Parliament.
Early in May this year, the president wrote to Speaker Rebecca Kadaga warning that MPs lack the “moral right” to exempt any of their emoluments from taxes and that by doing so, they “would send a bad message” with other Ugandans joining the bandwagon to demand a freeze on their emoluments.
After condemning legislators’ contentious tax deal as “politically and morally incorrect”, President Museveni has softened his stance on the proposed amendment to income tax law.