The newly passed Income Tax Act 2023 has significant implications for various sectors, including NGOs, microfinance institutions, and private schools and universities, as it categorizes these entities as “companies,” placing them under corporate tax regulations.
In response to the law’s provisions, representatives from the CSO Alliance held discussions with several Members of Parliament before the bill was introduced in the National Parliament on 18th June 2023. During these discussions, they expressed their concerns regarding the increased tax burden on these organizations and proposed specific amendments to the law to mitigate its impact.
Several MPs voiced their concerns during parliamentary sessions, presenting “amendment proposals” aimed at addressing the issues raised by the Alliance. Despite these efforts, the Income Tax Act was passed via a voice vote without any significant changes to its original provisions, leaving many organizations facing increased taxation and operational challenges.