Kazo District councillor representing workers, Mugabe Alex Kayabuki, has appealed to the government to scrap or revise the 40 per cent tax he says is imposed on district councillors’ allowances, arguing that the current arrangement unfairly penalises elected local leaders.

In an appeal addressed to President Yoweri Kaguta Museveni, ministers, Members of Parliament, the Permanent Secretary to the Treasury and the Commissioner General of the Uganda Revenue Authority (URA), Kayabuki called for a review of the tax treatment of councillors’ allowances and the legal framework governing their work.

He said district councillors receive a monthly ex-gratia allowance of Shs250,000, which he claims is subjected to a flat 40 per cent tax rate because it is classified as income from secondary employment.

Kayabuki argued that the tax treatment is inequitable, particularly for councillors who previously worked in public service and had to resign to contest for elected office.

He cited Section 129(5) of the Local Governments Act, which requires specified public officers and employees to resign at least 30 days before nomination if they intend to contest for a local council office.

The provision is intended to safeguard political neutrality and prevent conflicts between public service responsibilities and partisan political activity.

Kayabuki said it was contradictory to require public officers to leave their jobs to contest for local council positions while subsequently treating the allowances attached to their elected offices as secondary employment income.

He argued that the allowance, which is intended to facilitate councillors’ oversight and representation duties, is too modest to justify what he described as a punitive tax burden.

District councillors are responsible for monitoring government programmes, overseeing local government projects, scrutinising service delivery and representing their constituencies.

However, Kayabuki said their remuneration does not adequately reflect these responsibilities, adding that restrictions on certain government-related business dealings further limit their opportunities to supplement their income.

He also questioned the differences in the tax treatment of district councillors’ allowances and those paid to councillors at lower local government levels, whom he said do not face a similar tax burden.

Kayabuki further raised concerns about disparities in remuneration and retirement benefits between district councillors and other elected leaders, including Members of Parliament and members of district executive committees.

He asked the government to clarify the applicable tax rules and consider reclassifying district councillors’ allowances as primary employment income or granting appropriate tax relief.

He also called for a broader review of the remuneration and regulatory framework for local political leaders to ensure that their terms of service support effective performance of their statutory responsibilities.

Kayabuki said a review would promote fairness and consistency in the application of the law while strengthening decentralised governance and the capacity of councillors to hold local governments accountable.