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Kitgum, Uganda | URN | Traders in Kitgum Municipality have turned to Prof. Ogenga Otunnu to intervene in an escalating dispute with municipal authorities over taxation, citing harassment, overcharging, and lack of consultation.
Two weeks ago, some 300 members of the business community protested what they described as excessively high taxes imposed by the municipal authorities.
Following the protest, municipal leaders held a meeting with the traders and promised to have the fees revised. However, after waiting for the revision in vain, the business people contacted Prof. Ogenga Otunnu, an advisor to Gen Salim Saleh, to intervene.
The business community, largely made up of small-scale traders, petitioned Otunnu, accusing revenue collectors of imposing taxes without proper assessment and using coercive enforcement methods under the Integrated Revenue Administration System (IRAS).
Speaking after a meeting with a section of the traders and municipal leaders on Thursday evening, Otunnu said the traders had directly reached out to him after their concerns went unresolved.
“They called me to raise concerns over taxation, the level of taxes they were paying, and the lack of proper procedures,” he said.
He added that the intervention was aimed at restoring calm and ensuring a balance between government revenue collection and the survival of small businesses.
In their petition, traders listed key grievances, including lack of consultation in setting taxes, absence of valuation, intimidation by enforcement officers, and degrading treatment.
Castro Alengai, an electronics dealer, said the traders were not opposed to paying taxes but objected to how they were being implemented.
“We were not sensitized or assessed. Enforcement officers just come abruptly, close your shop and demand payment,” Alengai said.
He noted that some traders had seen trading licence fees increase sharply, in some cases from about Shs230,000 to Shs400,000, sparking fears of being pushed out of business.
Alengai also accused some municipal agents of issuing payment reference numbers with unrealistic deadlines and disregarding established procedures.
Meanwhile, Walter Alii, Executive Director of King of Kings Multi-Investment and Consultancy Farm, raised concerns over the implementation of the Integrated Revenue Administration System (IRAS), accusing authorities of misinforming traders and imposing unfair tax rates compared to other towns.
Alii said the core issue affecting traders is how the IRAS system is being applied locally, rather than the concept of taxation itself. “Our businessmen are being given false information that traders along Kitgum Road must pay Shs200,000. That is not correct and must be clarified,” Alii said.
Alii questioned why traders in more established urban centers such as Jinja, Mukono, Arua City and Yumbe reportedly pay less than Shs70,000 under the same system, while some traders in Kitgum are being charged up to Shs400,000.
“Kitgum is still an emerging municipality, yet our traders are paying far higher than those in bigger and busier towns,” he said.
He cited cases where traders who previously paid about Shs150,000 are now being asked to pay up to Shs400,000, describing the increments as excessive and unjustified.
Alii urged the municipal authorities to review and reset the data entered into the IRAS system, arguing that the platform depends on locally fed information. “IRAS is fed from here. It is not fixed. The head of finance inputs the data, and it can be corrected,” he said.
He called on the town clerk to direct the finance department to revise the system to reflect fair and comparable rates across the country.
Alii warned that high taxes risk driving local business owners out of prime trading areas, leaving room for outsiders to dominate the economy.
Saying traders are central to economic development and urban growth he urged authorities to support rather than burden them. “Without business people, there is no town, as they are the engine of growth,” he explained.
Kitgum Municipal Town Clerk, Joseph Monday Bagonza, confirmed receiving the traders’ petition and said engagements are ongoing to address the concerns.
Bagonza defended IRAS as a transparent, government-backed system designed to curb revenue leakages by eliminating cash transactions.
“The system ensures that money goes directly to government accounts. It protects both the taxpayer and the government,” Bagonza said.
He, however, admitted that irregularities could have occurred, including possible collusion between some traders and revenue collectors to underpay taxes, but dismissed claims of 100 percent increment as untrue.
“When enforcement shifts to the correct rates, it may appear like overtaxation,” he said, adding that a follow-up meeting is scheduled for Monday to further engage traders, explain the IRAS system, and address outstanding grievances.
Kitgum Deputy RDC Walter Komakech Oyoo attributed the dispute to strict enforcement of the tax system combined with inadequate sensitization.
“This conflict is arising from lack of tax education and limited involvement of traders,” Oyoo said, revealing that the authorities had agreed to take disciplinary action against errant tax collectors and intensify public awareness of the system.
