Commentary

FDC party’s proposal on PAYE tax misleading

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By Rose N. Namayanja

Posted  Friday, August 22   2014 at  01:00
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The ‘mathematicians’ at the Forum for Democratic Change (FDC) need to illustrate and corroborate their utopian proposals and figures. (See, “Reduce PAYE tax from 30 per cent to 5 per cent, says FDC” published in the Daily Monitor of August 20).

If FDC assumed the leadership of Uganda and implemented this scheme of reducing PAYE, a contribution by citizens in formal employment to the government, the result would be an 83 per cent drop in revenue realisable from the tax. It would then be interesting to see how the FDC government would fund core government services such as education, health, infrastructure, ICT and security.

How would such sectors, which are key drivers of our economy fair without resourcing, to which PAYE contributes significantly? The outrageous FDC proposal is another illustration of malaise in attempts at policy articulation by an opposition political party, living a pipe dream. It is a hallmark of how hollow, populist opposition out-bursts can be detached from the real aspirations of Uganda’s masses.

Thankfully, we have a discerning population which can unravel this fiction, and has been expressing itself in repetitive rejection of FDC’s electoral attempts at assuming the leadership of Uganda. Indeed, such opposition attempts of hoodwinking to take power are akin to a futile of a mirage.

Governance in Uganda is about dealing with real life development challenges that our people face. Government appreciates the commitment of our people towards contributing to the Treasury, to the extent that we are now able to fund over 80 per cent of Uganda’s budget. Meanwhile, parties like FDC can enhance their numeracy skills and knowledge on fiscal policy at the numerous institutions offering adult education in Uganda today.

Ms Namayanja Nsereko is the Minister of Information and National Guidance