Majority of the private companies in Kabale District are avoiding payment of Local Service Tax, NSSF contributions, and employee salaries by coercing individuals into signing volunteer papers.
This was disclosed by Kabale District’s senior Labour Officer, Mr. Swizeen Ndyabawe, on Friday, May 24, 2024, while in his office at the district headquarters in Kabale Municipality.
Speaking to our reporter, Swizeen Ndyabawe stated that most of these incidents occur in media houses and private schools, where employers attempt to evade taxes such as the Local Service Tax and NSSF contributions.
Ndyabawe emphasized that it is mandatory for every employer to remit the Local Service Tax to lower local government entities, such as divisions. However, it is regrettable that some employers compel their employees to renounce their employment status and declare themselves as volunteers.
He mentioned, “This is often due to the ignorance of the employees and their fear of losing their jobs.”
Furthermore, he indicated that the government is likely to continue experiencing revenue losses from these private companies, which disguise their operations by claiming to rely solely on volunteers at their premises.
