Proprietors of SACCOs across the country have urged government to scrap taxes against them to enable their members prosper at a higher rate through their various activities that they set up.
The board chairperson on one of the SACCOs under the names of Shuuku SACCO ltd, Stephen Bongonzya, while appearing before Parliament’s committee on finance recently chaired by the Rubanda East MP, Henry Musasizi, said that SACCOS in the country are paying a number of taxes which he says is limiting their growth.
Bongonzya mentioned some of the taxes to SACCOs that include; operations tax saying they pay 15 percent withholding tax on interest earned on savings adding that in addition to this, they also have to pay 30 percent corporation tax which he says has hindered the growth of most SACCOs across the country.
“These taxes affect long income earners especially in the rural areas because instead of them reaping from their profits after saving for about a year, taxes are deducted and this demoralizes a number of them from re-investing.Government should scrap taxes to enable members prosper economically,” Bongonzya said.
Bongonzya says that SACCOs should instead be exempted from all these taxes so that they can use this money for re-investment.
While defending the idea to scrap taxes on SACCOs to committee members, the Woman Member of Parliament for Masindi, Jalia Bintu, who is also the chairperson of Parliamentary SACCO, explained that they do not want government to exempt SACCOS from paying tax indefinitely but they will pay tax once they have gained capacity.