By Prossy Nandudu
The Ministry of Agriculture Animal Industry and Fisheries is opposed to the introduction of cow tax, being proposed by some Civil Society Organizations.
Cow tax is one of the suggestions that COS like the Center for Constitutional Governance wants to be introduced in the draft bill which is among the new tax reforms bills proposals before parliament.
According to Sarah Birete, the Executive Director for the Center for Constitutional Governance taxing cows will increase Uganda’s tax base.
In her statement on Twitter on Wednesday (today), Birete is of the view that since 68% of population is engaged in Agriculture, the tax should be imposed on farmers with more 30 heads of cattle.
However, the Agriculture Minister Frank Tumwebaze is opposed saying such a tax would prohibit growth of the enterprise.
“So the purpose of that tax would be to discourage having more cows, goats & thus discouraging production? How then will u ever increase production if the policy measure (tax) is to prohibit horizontal growth of the enterprises?” wondered Tumwebaze while responding to Birete through his Twitter handle.
According to Tumwebaze instead of taxing the enterprise, the tax should be imposed on the product or outcomes from the enterprise.
