news 10 November 2026 Parliament of Uganda
Government clarifies hard-to-reach allowances and councilor tax exemptions
State Minister for Finance Henry Musasizi told Parliament that civil servants at district headquarters, cities, and town councils are excluded from hard-to-reach allowances, while addressing taxation concerns affecting local government councilors. Source: https://www.parliament.go.ug/index.php/news/4718/not-all-public-servants-local-governments-entitled-hard-reach-allowance
Public servants stationed at district headquarters, cities, and town councils are not entitled to hard-to-reach allowances, even if their operating environment is deemed challenging.
State Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, explained that the policy excludes administrative centers because the financial incentive is specifically targeted at attracting and retaining skilled personnel in remote and underserved locations.
Addressing Parliament on Tuesday, November 10, 2026, Musasizi noted that the allowance amounts to 30 percent of the approved salary structure from the 2017/2018 financial year. The hardship allowance was originally established under the Public Service Reform Programme in July 2010 to combat staffing shortages caused by geographical isolation, poor infrastructure, and insecurity across designated districts.
However, several legislators challenged the current framework, arguing that numerous communities face severe geographical hardships despite being situated in non-classified districts. Rubanda West MP Hon. Bruce Balaba highlighted Lake Bunyonyi, where students and teachers must risk crossing by canoe. Similar geographical challenges were raised by Bushenyi District Woman MP Hon. Annet Katusiime and Kaberamaido County MP Hon. Alfred Edakasi regarding isolated peninsulas and poorly accessible sub-counties. In response, Musasizi agreed to bring these concerns forward to the Cabinet for further review.
In addition to public servant allowances, the minister addressed the taxation of local government councilors. Kole North MP Hon. Samuel Opio raised issues regarding the Uganda Revenue Authority imposing a 30 percent Pay As You Earn tax on councilors whose sole income derives from allowances.
Musasizi clarified that blanket tax deductions on councilors relying entirely on allowances are incorrect under the law. He explained that individuals with no other income source should be tax-exempt, whereas secondary incomes like rentals or business earnings remain taxable. The ministry pledged to coordinate with the URA and local governments to resolve existing implementation inconsistencies.
Read more details in the Parliament of Uganda Report.