LIST: MPs, govt agencies top list of tax defaulters

Current and former Members of Parliament have been listed among the more than 800 individuals and companies that have defaulted government taxes to a tune of Shs346 billion.
This is contained in the Ministry of Finance’s response to the issues raised by the Opposition in Parliament on the Charter of Fiscal Responsibility for the Financial Year 2021/2022 to 2025/26. 

According to the list, individuals and private companies owe a sum of Shs137 billion while entities owe Shs 209 billion to the government.   
On the list, six current MPs have tax arrears. They are State Minister for Microfinance Haruna Kasolo with a bill of Shs94m, Cissy Namujju the Lwengo Woman MP owes Shs51m, Aringa South MP Allioni Yoke Odria (Shs 57 million), Nakaseke District Woman MP Sarah Najjuma with Shs 7m, East African Legislative Assembly (EALA) MP James Kakooza with  Shs 950,000, and Bukoto South MP Twaha Kagabo Mzee has tax arrears of Shs 1.1m.    
The former MPs include Odonga Otto (Shs 11 million), Julie Mukoda Zabwe (Shs 15m), Sam Engola (Shs 32m), Fred Angella (Shs 20m), Hatwib Katoto (Shs 65m), Paul Amoru (Shs 2.8m), Kenneth Lubogo (Shs 7m) and Crispus Ayena (Shs 8m).  
The same list also has retired Justice Steven Kavuma (Shs 4.4m) and retired Justice Ralph Ochan (Shs14m). Musician Joseph Mayanja also an outstanding debt of Shs 28m.
The government entities that owe over Shs 209b include the Ministry of Finance itself with unpaid commitments of Shs 150b, the Office of the Prime Minister with Shs30b. Others are Ministry of Energy (Shs 13b),  State House (Shs 3.4b),  Ministry of Water (Shs 2b) and Ministry of Health (Shs 3.4b) among others.   
The other entities include Pioneer Easy Bus with tax arrears of Shs 5.7b, Uganda Telecom with Shs 72m, Bata Shoe company (Shs 245m), Tomao Uganda Limited (Shs 2.4b),  China Railway 7th Group (Shs150 million), Roofclad Limited (Shs 2.9b), KMPG c/o Crown Beverages (Shs1b), Airtel Uganda (Shs764m), Florence Baby Centre Limited (Shs1.3b), MTB Co. Limited (Shs10 billion) and Century Bottling Company (Shs3.9b), among others entities.
State Minister for Finance Amos Lugolobi presented the list on Wednesday after Parliament’s Budget Committee tasked the ministry to present a detailed statement on the state of domestic arrears, absorption of loans and tax arrears.
“Our tax to GDP ratio is low and there are very important reasons as to why it has remained low. Number one is that most of you do not want to pay taxes; the tax evasion element is quite high. When I talk about rental tax, everybody runs away and I know how many of you own properties but how much tax do you pay in terms of rental taxes,” Mr Lugoolobi said.
Reacting after the minister’s submission, Butambala County MP, Mr Muwanga Kivumbi said it was rather unfortunate to see leaders at the top of those who are not paying taxes.  
“I do not whether you have bothered to go through that list Hon Minister, even companies you exempt from corporate tax have arrears, I have seen honourable members of cabinet including some members of this committee (budget), it’s really sad,” he said.
Buikwe South MP, Mr Bayigga Lulume said the government should not only focus on effectively collecting tax from the low-level income earners but from key government officials and politicians.
“You realize these are big tax payers but are defaulters, we also realize that this country is being shouldered by small tax payers who are easy to collect taxes from, their small enterprises are easily locked with padlocks, they contribute to the bulk of money that we use,” he said.
The MPs have also registered concern over the absence of a clear commitment by the government to clear domestic arrears which are suffocating the economy. 

While reviewing the government's Charter of Fiscal Responsibility, MPs were shocked to learn that the government's domestic arrears have recently increased to Shs 4.1 trillion. 
Mr Lugoloobi told the committee that they are moving to sanction Accounting Officers who continue to accumulate domestic arrears and many will face contract terminations if they continue with the practice.