|Domestic Rental Income should have never been taxed
Mable Twegumye Zake – @MableTwegumye
The tax system in Uganda charges you for many things that you already pay for but introduces new taxes in disguise.
Your salary is taxed at the end the month from PAYE then subjected to a swam of VAT through each purchase you will make from foodstuffs to transport fares that may keep varying depending on the “dollar” right?
How much of your income do you save for your own benefits that may include setting up rentals to support your well being if you have rental fees, school fees, bank charges, medical fees, etc. If at the end of the day your take-home isn’t enough to sustain your needs, the loan-syndromme will kick in.
There are Ugandans who struggle for a period of ten years or more to construct a home and be saved from the menace that is RENT!
Domestic landlords in Kampala have been enduring this pain for a few years now, however URA recently announced the countrywide uniformity to register all landlords and trust me I predict the same woes in the near future that commercial real estate landlords battle with tenants or even worse.
The menace that is rent is part payment for loans, the basic responsibilities that never go away or for a secure living that is every citizen’s right.
That means if a landlord makes losses, he still needs to incur the standard annual URA rental income taxes nonetheless meaning he will find himself subjecting his hard earned salary or other income generating activities which are also taxed so the citizens are reduced to being slaves to URA because of the vicious cycle
URA is reaching into their collections too, saying well…well…well….until you die, we need some of that money too! Must they also die POOR?
Landlords will increase the rental fees but it won’t make a big difference anyway since the more taxes they will pay, then tenants will feel the pinch on their salaries and their standard of living; their dream of ever living a stable life will loom even further but will keep saying, “Gavumenti Etuyambe…”
I don’t even want to imagine these conflicts between URA and Landlords over the under declaration of their Rental income status then URA making their own estimate. This will result into domestic landlords increasing rent of course; will domestic tenants also call for demonstrations and strikes like the commercial tenants do in Kampala?
Oh please spare us and let Ugandans live a little after all the tax burden is already heavy on their shoulders because you tax their income from all corners and soon they won’t be able to breathe!
|Taxation is no theft, it’s pay for services
Dalton Kaweesa – @DaltonKaweesa
Domestic rental tax is under serious attack from different people; politicians, business community and a few of us who still live in a bedsitter – with resident fear of the repercussion on our monthly levy by the landlords.
This is the interesting conversations from the washed and unwashed friends while I sip away to alcohol free beverage.
Some people argue that tax is a form of theft from people who have earned their wealth or income through hard work. This generic argument is complemented with a second, that “The people who run my government are all thieves.”
This forms my basis of argument for the rental tax today, and employ all those against it to rethink in this direction. if you receive something in return, services provided: roads, educated workforces, police then you cant claim that that is theft since it is paying civil servant.
Imagine there were no taxes in this country what would happen of the roads, the soldiers that keep the territorial integrity of this country – just imagine!
While Uganda’s housing units grows by 300, 000 per year , a close look at these figure betrays one aspect that many of the mushrooming apartments are constructed with the source of money being suspect. A tour of Kyaliwajala which ten years a go was a bush and village at that , demonstrates Uganda’s appetite for real estate; however the ownership is largely by government officials or kin close to the power. The argument here is that the people who most likely stole money from the tax payer and invested heavily in real estate instead of staking the money in offshore companies, the tax somewhat helps us to reclaim the money.
If the person got money in the wrong mechanism, this offers light to pay back to the government of Uganda through rental rent.
In simple language, since one’s area code attracts a given level, the tenants are protected since the increment in the rent doesn’t necessarily mean the land lord is going to gain more, but the taxman.
So for all those crying foul over this tax, first reflect on the services we get from police the army and other stakeholder. Let the tax come.