Ugandan President Yoweri Museveni has proposed scrapping Pay As You Earn (PAYE) tax for scientists as part of broader efforts to strengthen the country’s economy and retain skilled professionals.
Speaking at the launch of a vaccine on Thursday, April 30, Museveni noted that while progress has been made, more reforms are needed to ensure that scientists remain in the country and contribute effectively to national development.
“I worked to stabilize our scientific community. That’s why, even though I faced opposition from others, I insisted on increasing scientists’ salaries. But I would like us to do even more,” said Museveni.
He argued that the current heavy taxation discourages scientists from remaining or working in the country.
Museveni added that tax relief should be extended to scientists in the same way it applies to members of the police and military.
“Because scientists, even if they’re given what they’ve been given, starting with a 30% tax, rarely return. So, in the new government, I want to propose ideas that we will discuss,” said Museveni.
Museveni Plans to Scrap Tax for Scientists and Doctors
The president suggested that scientists should be treated as a strategic group due to their limited numbers and high impact on national development.
Also Read: Uganda Hurts Kenya Following Decision to Import Own Fuel
He also proposed extending similar tax exemptions to doctors and engineers, noting that although they are few in number, their contribution to the economy is significant.
“What if we treat these scientists like soldiers? And we said okay. They are few in number… because you do a special job, you don’t pay the tax.”
In addition, Museveni argued that scientists play a critical role in sectors such as agriculture, innovation, and industrial development, and that their work has a far-reaching impact essential to economic transformation.
The president highlighted a greater focus on using science to drive economic growth, noting that innovation should be prioritized over other academic disciplines that contribute to national documentation and cultural work.
He further maintained that strengthening the scientific community is key to building a stable and self-sustaining economy.
Uganda Proposes Plan to Have Innovators Tax-free
This proposal comes after Museveni previously stated that Uganda would explore establishing a fund for science and innovation, while warning the revenue authority against levying taxes on innovation.
The Ugandan president said the funds would be allocated annually as seed capital to innovators.
Also Read: How Kenya’s Fuel Prices Compare With Uganda, Tanzania, Rwanda, and Ethiopia
Additionally, Museveni said the government had recently allocated more funds to the community development model and could also provide the minimum funding requested by scientists and entrepreneurs.
However, he urged the science and technology ministry to bring the private sector on board to provide additional venture capital for science and innovation projects.
Museveni also criticized his government for taxing innovators, saying the innovators had not highlighted the issue, and it would have stopped.
