The Ministry of Water together with the National Environment Management Authority (NEMA) have asked Parliament to stop the remittance of money collected through the environmental levy to the Consolidated Fund.
The officials led by the Minister of State for Water and Environment, Aisha Ssekindi made the call on Monday while appearing before Parliament’s Environment and Natural Resources Committee to discuss the Budget Framework Paper for the financial year 2022/2023.
Environmental levy is charged on various items like old cars and machines as a means to prohibit pollution and destruction of the environment. Up to 262 billion Shillings was collected in environmental levy and Non-Tax Revenue (NTR) last financial year 2020/2021.
During the meeting, Busiki County MP Paul Akamba asked why the environmental levy fee was remitted to the Consolidated Fund yet the law indicates that the money should be retained by the entity. Similarly, Sheema Municipality MP Dickson Kateshumbwa said that while the levy is meant to strengthen the government’s environmental response, this purpose is not currently being met due to the anomaly.
“You cannot have the Ministry of Finance disregard part of the law by administratively moving it to the Consolidated Fund yet it is supposed to be retained,” Kateshumbwa said.
Christine Kaaya Nakimwero, the Kiboga Woman MP and Shadow Minister for Environment said that the environmental levy is meant to help different districts handle environmental concerns.
Alfred Okot Okidi, the Permanent Secretary Ministry of Water and Environment also raised concern that when the money goes into the Consolidated Fund, it does not adequately return to them. In the same vein NEMA Executive Director Dr Akankwasa Barirega told MPs that sending the money to the Consolidated Fund is a breach of the law as the Constitution requires that money due to a special fund established by Parliament shall not constitute part of the Consolidated Fund.
On the basis of this, Bukimbiri County MP Eddie Kwizera also wondered why the law is not respected in regard to the levy.
Dr Emmanuel Otaala, the committee Chairperson said that they would engage the Ministry of Finance to ensure that this matter is resolved. He said that what is happening is in total disregard of the law.
