Government has been sued for passing the income tax (rental rates) on rental properties along the roads, lanes or streets allegedly without following proper legislative procedures.
Open Forum Initiative (TOFI), in the law suit it filed before the High Court in Kampala, contends that the passing of the regulations did not obtain Parliament approval.
“The passing of the regulations did not follow the rightful procedure of obtaining Parliamentary approval as required by statutory instruments made under Section 5 of the income Tax as amended, “reads in part the court documents.
Adding: “The continued existence of the rental rates (income tax) regulations, 2020 is an illegality which ought not to be pardoned by this honorable court and any law abiding citizen.”
TOFI contends that Finance minister Matia Kasaija, in exercise of his powers under section 164 of the income tax act made the impugned rental rates regulations, 2020 prescribing rates on rental properties along roads, lanes and streets.
Through their lawyers of Festo & Co. Advocates, the activists now want court to quash the income tax (rental rates), Regulations 2020, having been made without approval of Parliament.
“An order to quash the income tax (rental rates) published in the Uganda gazette dated March 13th, 2020, the same having been made illegally by the honorable minister of finance, purportedly under Section 164 of the Income Tax without the approval of Parliament,” Mr Emmanuel Ajai, the executive director of TOFI states in his affidavit to support the suit.
He adds that he could not access for analysis, the new rates because they were gazetted and released during COVID-19 pandemic lock-down, a period that was characterized by restrictions that imposed closure of offices and banned movements.
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