Tax expert cautions Parliament on rental income tax
News
Keep Reading
A tax consultant has cautioned Parliament on the negative implications on the proposed rental income tax amendments for the financial year 2022/23.
Joseph Okuja from Libra Advocates and Consultants at a meeting with committee of Finance told the MPs that the proposed increment in the rental income tax will segregate individuals from companies.
He said that the proposal undermines the current structure of income tax which is aimed at being progressive. This, he held, means that the more an individual earns the more they pay.
"In this amendment, rental tax for individuals is regressive setting the same percentage for all rental earners regardless of the amounts they make,” Okuja stated.
Okuja said that the amendment does away with a threshold on the rental income tax, putting small and big landlords at the same level of taxation.
Basil Bataringaya, the MP for Kashari North asked the consultants for their view on the best course of action in considering the amendment.
Okuja responded that the law should be equitable and progressive, charging the same rate to all groups invested and dependent on their earnings
