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Mbarara, Uganda | THE INDEPENDENT | The Mbarara City Council executive committee has proposed to introduce the development permission tax.
While presenting the draft estimates of the revenue and expenditure for the financial year 2024/25, the Secretary for Finance and Administration Ronald Taremwa told the council that the new tax is being introduced under section 33 (1) of the Physical Planning Act 2010. The new tax will be obtained from the physical planning committee.
Under the new tax, a developer will obtain a development permission certificate.
The tax will also have two categories of permits. They are commercial and industrial permits will be charged 170,000 shillings, and other land use developments like residential, institutional, and civic permits will be charged 150,000 shillings.
Taremwa said that the money raised from the new tax if approved by the council will supplement the local revenue of Mbarara City.
Bonny Tashobya, the Speaker of Mbarara City Council, urged councilors to review the draft budget estimates, with a focus on increasing local revenue to improve service delivery.
He mentioned that the new development permit fees will increase the city council’s revenue and also ensure proper infrastructural development in the city.
John Baptist Mujuni, the Secretary General of Mbarara City Development Forum said they will offer their opinion to the city council before approving the fees.
Taremwa also presented a draft budget estimate for the financial year 2024/25, with a resource envelope of 45 billion shillings. The projection is to collect 10 billion shillings from local revenue and receive 35 billion shillings from the central government.
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