Alex Mugabe Kayabuki, a Kazo District councillor representing workers, has asked the Ugandan government to rethink the tax regime applied to district leaders. According to Nile Post, Kayabuki believes the existing system unfairly burdens local political figures who receive modest compensation for their public duties. He specifically targets the application of a flat 40 per cent tax rate to these payments, a measure he views as inconsistent with the legal framework governing local government elections.
Kayabuki notes that district councillors receive a monthly ex-gratia allowance of Shs250,000. He claims this sum is taxed at the high rate under rules governing secondary employment. This treatment, he argues, is problematic because Section 129(5) of the Local Governments Act mandates that public servants leave their jobs before running for local council seats. Consequently, he suggests that the pay they earn as elected leaders should not be classified as secondary income.
The councillor highlighted that the current system leaves leaders with limited financial support despite their extensive responsibilities. These duties involve tracking government initiatives, supervising service provision, and voicing community concerns. Kayabuki also questioned why district councillors face a heavier tax load than their counterparts in lower-tier local governments, who reportedly do not bear a comparable burden. He noted that conflict-of-interest rules further restrict district councillors from engaging in certain business transactions, limiting their ability to supplement their income.
In response, Kayabuki called on the Ministry of Finance, the Uganda Revenue Authority, and Parliament to clarify the legal basis for these differing tax treatments. He proposed reforms that would promote fairness among elected leaders, such as treating their stipends as primary income or granting specific tax relief. Kayabuki argued that aligning the tax treatment with the legal requirements for eligibility would strengthen decentralisation and improve local governance.
He warned that the combination of modest allowances, high taxation, and economic restrictions might deter capable candidates from seeking elective positions at the local level. According to Nile Post, Kayabuki emphasized that the goal is not special treatment but a consistent system that recognizes the responsibilities of district councillors. He urged the government to establish a fair framework that enables local leaders to perform their duties effectively without being financially penalized for their public service.