The new tax regime is impacting the management of the Savings and Credit Cooperative Societies that are now forced to adjust to the increased operational costs, the National Chairman of the Hazina Savings and Credit Cooperative Society, Evans Kibagendi, has said.
Some Sacco leaders have been calling on tax breaks and moratoriums to cushion the societies from the current economic hardships.
According to Kibagendi, the new tax regime has introduced a raft of corporate taxes that the organizations have to meet. Given the other taxes that individual members have to pay as citizens, it has generally affected the income of the organizations.
“Our income bracket has gone down because of taxation and what the members are undergoing,” he said, adding that even management expenses have been affected.
Mr Kibagendi said that people were avoiding loans, something that was having an impact on the operations of the Saccos.
“Members are unable to meet their desires because of high taxation,” he said, adding, “However, we have not reached a point where we can say we are in a crisis.”
The chairman, however, said that Hazina Sacco has adjusted and is doing all it can to ensure that its members are well taken care of.
