The Mukono Municipality Member of Parliament, Betty Nambooze Bakireke, has voiced strong criticism of the government’s handling of tax policies, accusing it of burdening citizens with excessive taxation and calling the country a “failed state.” Her comments came during a recent interview on a local radio station, where she expressed deep concern about the government’s approach to tax collection, particularly in the education sector.
Nambooze’s remarks were triggered by a new policy from the Uganda Revenue Authority (URA) that aims to collect taxes directly from school fee payments using the Integrated Financial Management System (IFMIS). The system mandates that all payments made to schools be monitored closely by URA officials, who will be stationed in the offices of school bursars to oversee transactions and prevent tax evasion.
She criticized the government’s decision, describing it as an invasion of privacy and an unnecessary burden on both schools and parents. “The government is treating schools like criminals,” she said. “This is a desperate measure that will scare parents away from sending their children to school, especially if it results in increased fees.”
Nambooze further highlighted that the URA recently announced the creation of 5,000 jobs, primarily to station personnel in private businesses, including schools, supermarkets, hospitals, and retail shops. According to her, these new employees will be tasked with ensuring tax compliance and monitoring all monetary transactions—a move she believes is misguided and detrimental to economic growth.
“This is an overreach,” Nambooze added. “Instead of encouraging businesses to thrive, the government is creating an environment of fear and distrust. This approach is going to discourage investment and hurt small businesses.”
The recent policy changes have sparked widespread discontent among various sectors, particularly within the education community. Many school owners and administrators are worried that the increased scrutiny and administrative costs associated with implementing IFMIS will inevitably lead to a rise in school fees, further straining already struggling families.
Traders, too, have expressed strong opposition to the introduction of IFMIS, arguing that it complicates their operations and increases the cost of doing business. Several business associations have called on the government to reconsider or at least delay the implementation of these tax measures to allow more time for businesses to adjust.
The debate over these new tax measures comes at a critical time for Uganda, as the country grapples with a sluggish economy and rising inflation rates. Critics argue that the government’s aggressive tax policies will do more harm than good, potentially leading to reduced consumer spending and economic stagnation.
In her interview, Nambooze did not hold back in her criticism, suggesting that the government’s approach reflects a deeper failure to address the root causes of the country’s economic challenges. “We are witnessing a government that is losing touch with the realities on the ground,” she said. “Instead of supporting its people, it is choosing to punish them.”
The Ugandan government and URA have yet to respond directly to Nambooze’s comments, but they have defended the tax measures as necessary for increasing revenue and ensuring that all sectors contribute fairly to the national budget. However, with growing opposition from various stakeholders, the effectiveness and fairness of these policies will likely remain a hot topic in Uganda’s political and economic discourse.
