As private educational institutions continue to thrive and boost Uganda’s education sector, the proprietors have decried the unfair policies and high taxes levied on to them.
The unfair policies and high taxes are looked at as major hinderances contributing to their downfall.
The observation was made during the celebrations to mark the National Private Educational Institutions’ Association – NPEIA, a function that was recently held at Nyakasanga Playground in Kasese town.
Among the taxes stated were the National and Local Taxes like the corporate income tax (typically 30% on profits for companies), Pay As You Earn (PAYE) on staff salaries, local government property and ground rent and the withholding tax on suppliers.
Authorities like the Uganda Revenue Authority enforce these rules, noting that schools function as income-generating businesses.
Mr. Hasadu Kirabira, the 3rd National Chairperson for the Private Educational Institutions’ Association-Uganda speaking at the 5th celebrations, questioned the rationale behind taxing multiple aspects of the private education institutions including teachers, signposts, buildings, vehicles, institutional operations and salaries.
Mr. Denis Ahimbisibwe, the proprietor of Destiny Preparatory Nursery and Primary School in Kasese town who also doubles as the Chairperson for NPEIA in Kasese District, attributes the rampant closure of private educational institutions to the alleged failure to meet the required obligations.
The Obusinga Bwa Rwenzururu Prime Minister, the Rt. Hon. Benson Kule Baritazale, who is also the proprietor of 3 Wise men Star Kindergarten Nursery and Primary School, says to be able to facilitate the smooth running of the school’s activities, the management committee is left with no option apart from increasing the fees.
Responding to the calls made by the proprietors of private institutions, Hon. Michael Mawanda, the Igara East County Member of Parliament, who represented the 2nd Deputy Prime Minister of Uganda, Rt. Hon. Dr. Chrispus Kiyonga, who also doubles as the Member of Parliament for Bukonzo County West, said the government remains committed to working with the private educational stakeholders to address the above-mentioned challenges that affect the sector in terms of service delivery.
ENDS