Africa-Press – Uganda. A section of leaders in Masaka City are divided over a recent decision to charge grasshopper traders an operational fee.
Although some councillors argue that the business is unpredictable and would not be a viable revenue base, others want the grasshopper collectors to pay taxes like any other business.
The city mayor, Ms Florence Namayanja, said it was unfair for the council to collect fees from the traders because the business is seasonal and uncertain.
“It will be very hard to determine a particular rate for a business that is very unpredictable and seasonal. You need to study the seasons and find out how much the grasshopper collectors earn before you levy a particular standard fee,” Ms Namayanja told the council recently.
“I opposed the grasshopper tax because we are yet to study the business,” she added.
Mr Vincent Ssentongo, the chairperson of the social services committee, said taxing the grasshopper collectors without studying the business could cause trouble.
“It is very hard to estimate the amount of money to charge the grasshopper collectors. Unlike in other businesses that the movers of the motion are fronting, it is hard to determine what grasshopper dealers can pay,” he said.
Pushing for tax
However, councillors led by speaker Tonny Ssempija say it is unrealistic to charge people vending vegetables that operate below Shs50, 000 yet the grasshopper operators invest millions of shillings in the business.
“The grasshopper dealers will have a uniform licence fee to remit to the council because we know they are able to pay,” he said.
Mr Rogers Buregeya, the chairperson of the finance committee, said grasshoppers dealers receive city services like other business people.
The Resident City Commissioner, Mr Ronald Katende, called for a proper process to issue a tender to someone to collect fees from grasshopper dealers.
“I was surprised that a section of council leaders had issued a tender to some to collect fees from grasshoppers without passing through the right procedure. How can such a decision be taken without the mayor and other leaders’ involvement?” Mr Katende wondered.
However, the chairperson of Old Masaka Basenene Association, Mr Quraish Katongole, condemned the move saying it will be burdensome since they incur many costs in electricity bills and other charges.
He said they were already paying Shs30,000 as working permit fees to the divisions.
The council had earlier made an assessment of Shs100,000 as licence fees per grasshopper collector.
The grasshopper dealers claim that the tax would amount to double taxation since they already pay some fee to the respective divisions.
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