Good move on wide consultation for tax legislation but broaden the debate
Thursday, January 12, 2023
The Parliamentary Committee on National Budget and Patrimony undertook the scrutiny of the draft law amending the 2019 law on tax procedures on January 11. Courtesy

Members of Parliament from the Standing Committee on National Budget and Patrimony have resolved to be more consultative whenever legislating on matters of taxation.

This, they said, is to ensure the fiscal laws that are passed by the parliamentarians respond to community needs and are considerate of their socioeconomic status.

Currently, parliament is scrutinizing the draft law amending the 2019 law on tax procedures, which is likely to see the tax regime revised following an outcry from the population over what they call burdensome taxes.

The amendment follows an instruction earlier this week by President Paul Kagame to the authorities involved to find innovative ways to increase tax collection without imposing prohibitive taxes that the citizens are complaining about.

One innovative way suggested by the President is to broaden the tax base, which is the most plausible, but it must be done right.

Going back to the new pronouncement by the legislators, this is the way to go. All stakeholders much be appraised on and fully involved every step of the way.

This not only facilitates compliance when it comes to implementing the said law but most importantly, it breeds ownership.

However, such consultations should not be only done for tax-related legislation. The citizenry and other stakeholders must be exhaustively consulted because all laws are legislated on their behalf.

Finally, this should be a lesson to our legislators. Even before involving the population, they themselves as people’s representatives must thoroughly scrutinise the bills that are presented to them from the executive to ensure they have the best interest of the people they represent.

We need laws, but we need good laws that respond to people’s needs and which are sensitive to challenges and economic realities of the day.