Parliament has turned down a proposal to establish a unified tribunal under the National Tribunal Bill, 2024, citing conflicts with Article 152 (3) of the Constitution. The Bill aimed to repeal the Tax Appeals Tribunal Act, the Electricity Disputes Tribunal Act, and all other legally established tribunals.
During the Second Reading in plenary on Thursday, 24 October 2024, the Committee on Legal and Parliamentary Affairs presented its report, which was followed by a dissenting report. In the minority report, Hon. Jonathan Odur (UPC, Erute County South) argued that expanding the Bill to encompass all tribunals carries constitutional implications that could undermine the law’s legitimacy.
Odur also referenced the majority report, noting that it rightly observes that tax tribunals, including the Tax Appeals Tribunal, are created or constitutionally empowered to be established, thus meriting constitutional protection.
“Taxation is a critical mechanism for the government to raise resources for public services. The drafters of the 1995 Constitution recognized this and, in their wisdom, dedicated a specific article—Article 152—under the heading of TAXATION,” Odur stated.
He further criticized the committee for not consulting the affected tribunals before drafting the Bill. These tribunals include the Public Procurement and Disposal of Public Assets Appeals, Insurance Appeals Tribunal, Uganda Communications Tribunal, and Retirement Benefits Appeals Tribunal. “For a matter as significant as taxation, the Uganda Revenue Authority (URA), the key stakeholder, was left out due to time constraints,” Odur noted.
He also pointed out that the Certificate of Financial Implication only considered the Tax Appeals Tribunal and Electricity Disputes Tribunal, neglecting the others. “A close review of the Certificate of Financial Implication, issued by the Minister of Finance, shows it was prepared to accommodate only the Tax Appeals Tribunal and Electricity Disputes Tribunal under a single National Tribunal,” Odur argued.
Hon. Wilfred Niwagaba, MP for Ndorwa County East and Shadow Attorney General, suggested that forming a single tribunal would require a constitutional amendment. “Clause 42 of the Bill effectively attempts to alter the Constitution by introducing provisions it doesn’t cover,” Niwagaba explained.
Leader of the Opposition, Hon. Joel Ssenyonyi, stated that the flawed financial certificate violates the Public Finance Management Act. “You’re attempting to cover multiple tribunals, meaning the financial certificate is incomplete,” Ssenyonyi emphasized. This led Speaker Anita Among to advise the Minister of Justice and Constitutional Affairs, Hon. Nobert Mao, to retract the Bill.
“There are issues with drafting, but with improvements, we’ll be ready to consider it,” Among remarked. Mao agreed, pledging to reintroduce the Bill after amendments. “We will pause for now and come back with a more refined proposal. We now understand the key points of contention,” he affirmed.
Committee Chairperson, Hon. Stephen Mugabi Baka, had defended the proposed legislation, arguing that it does not infringe upon Article 152 (3) of the Constitution. “The provision does not mandate that a single tribunal exclusively handle tax disputes,” he explained. Baka added, “Article 152 (3) envisions the establishment of multiple tribunals for tax disputes and does not specify that such a tribunal must be the ‘Tax Appeals Tribunal.’”
The intent behind the Bill is to implement the Government Policy for Rationalisation of Government Agencies and Public Expenditure (RAPEX), which was approved by the Cabinet on 22 February 2021.
