Parliament has rejected a proposal to introduce a single tribunal under the National Tribunal Bill, 2024, on grounds that it contravenes Article 152 (3) of the Constitution.
The Bill was intended to repeal the Tax Appeals Tribunal Act, the Electricity Disputes Tribunal Act and all other Tribunals established by law.
The Bill was tabled for Second Reading during plenary sitting on Thursday, 24 October 2024, wherein the Committee on Legal and Parliamentary Affairs presented its report that was followed by a minority report.
In the minority report, Hon. Jonathan Odur (UPC, Erute County South) argued that extending the Bill to all other Tribunals has constitutional ramifications which might affect the legality of the proposed law.
Odur also referred to the majority report, saying that it correctly observes that Tax tribunals including TAT is created or empowered to be created by the Constitution and therefore, should be on the list protected by constitution.
“It is therefore critical to note that Taxation is an important tool available to government for purpose of raising resources to deliver services to the tax payers. The framers of the 1995 Constitution were alive to this fact and in their wisdom, which we do not have any doubt at all, gave Taxation an article of its own in Article 152 under the heading TAXATION,” Odur said.
Odur also faulted the committee for not carrying out consultations on the Bill, saying that the other five tribunals that are to be dissolved were not consulted. These include; Public Procurement and Disposal of Public Assets Appeals, Insurance Appeals Tribunal, Uganda Communications Tribunal and Retirement Benefits Appeals Tribunal.
“On matters of taxation, the key stakeholder in Uganda is the Uganda Revenue Authority (URA) were not invited for the reason that the committee was out of time,” Odur said.
He also cited that the Certificate of Financial Implication considered only the Tax Appeals Tribunal and the Electricity Disputes Tribunal, leaving out the rest.
“A patient and critical analysis of the Certificate of Financial Implication issued by the Minister of Finance clearly shows for all intent and purposes that it was issued in respect of the National Tribunal BiIl, 2024 to ‘ration” the Tax Appeals Tribunal and Electricity Disputes Tribunal into a National Tribunal,” said Odur.
Ndorwa County East Member of Parliament who doubles as Shadow Attorney General, Hon. Wilfred Niwagaba, advised that establishing a single Tribunal requires a Constitutional amendment.
“In effect, Clause 42 of the Bill intends to amend the Constitution by infection. You are amending the Constitution by adding what the Constitution does not provide,” said Niwagaba.
Leader of the Opposition, Hon. Joel Ssenyonyi, said that the defective certificate of financial implication contravenes the Public Finance Management Act.
“In your case, you are seeking to deal with many tribunals that means your certificate of financial implication is defective,” said Ssenyonyi.
This prompted Speaker, Anita Among to guide the Minister of Justice and Constitutional Affairs, Hon. Nobert Mao to withdraw the Bill.
“There is a drafting problem, we could have something drafted better and we will still accommodate you here,” said Among.
Mao conceded and said the Bill will be re-tabled.
“We will pull back for now and come back better and stronger. The matters of contention are now clear to us. I wish to move under Rule 140 to withdraw the Bill,” Mao said.
Committee chairperson, Hon. Stephen Mugabi Baka, had presented the committee’s report, justifying that the proposed law does not contravene Article 152 (3) of the Constitution.
“The provision does not require that the settlement of tax disputes must be done by a single tribunal whose only function is to adjudicate tax disputes,” he said.
Baka added, “Indeed, clause (3) of article 152 is crafted in plural, and envisages the appointment of more than one tribunal for settlement of tax disputes. The provision does not also require that the name of the Tribunal envisaged in the provision is “the Tax Appeals Tribunal”.”
The policy behind the Bill is to give effect to the Government Policy for Rationalisation of Government Agencies and Public Expenditure (RAPEX) which was adopted by the Cabinet on 22 February 202l.
