Kampala, Uganda | THE INDEPENDENT | The increasing number of appeals on property valuations by Mukono municipal authorities is affecting the timely collection of revenue. Mukono municipality valued buildings and working spaces in 2019 with an intention of expanding its local revenue base. However, the big institutions and factories in Namanve industrial park have since appealed against the property valuation.
George Masengere, the Mukono municipal spokesperson says they are waiting for the tribunal to rule on the appeals whether or not to declare and dispose off debts of all academic institutions, factories and hotels that challenged the valuations. Some of the non-compliant institutions on the list include Uganda Christian University, Midhill nursery school, Victory student hostel, Roofings limited, Collin hotel and Jopa estates.
Some of the affected institutions told URN that they are working to settle the debts. By November last year, the debts from the property rates stood at Shillings 572,721,172 million.
Ronald Mukasa, a resident of Mukono municipality says that big institutions tend to dodge paying taxes, which explains the huge debts.
During the financial year 2019/2020, Mukono municipality received an advance fund of Shillings 1billion from the Central government that they were expected to pay back using local revenue. However, only Shillings 86 million has been realized.
Jamadah Kajjoba, the Mayor Mukono municipality says that failure to pay the whole amount delayed the release of funds from the central government for the first quarter of the financial year 2020/21, which is already affecting service delivery. The municipality adopted the E-log Rev, an online system for local revenue collection in Ggoma and the Central divisions.
The municipality has so far managed to register 396 billboards, 6,216 trading licenses, 6,189 local service and 7 local hotels. Records at the municipal finance desk show that most people in the business community are still failing to adapt to the new system, especially in Ggoma division. The Municipal Council Executive committee resolved to establish a revenue office at Namanve industrial park and Ggoma to extend services closer to the people but also realize timely revenue collections.