Africa-Press – Uganda. Kabale Municipal Council leadership is losing Shs1.6 billion from local revenue following a government order stopping them from collecting local revenue from the market vendors at Kabale Central Market.
The market, constructed under the African Development Bank-funded Markets and Agricultural Trade Improvements Project (MATIP) at Shs23 billion, was handed over to the Ministry of Local Government and Kabale Municipal Council on January 10 last year. The exercise of relocating vendors into the new market was concluded within two weeks after handover but they have not been paying taxes to the council since then.
The Kabale Municipality Town Clerk, Ms Justine Barekye, on Saturday, said a total of 1,119 lockup shops and food stalls were constructed where Kabale Municipal Council is expected to collect between Shs100,000 and Shs200,000 from each lockup shop depending on its location. The vendors operating food stalls were expected to pay between Shs15,000 and Shs150,000, depending on the category of items. Ms Barekye told this to the Minister of Local Government, Mr Raphael Magyezi, and his team that visited Kabale Central Market for the vendor verification exercise to ascertain the true ownership of lockup shops and food stalls.
“Ever since the newly constructed Kabale Central Market was handed over in January last year, Kabale Municipal Council has not collected any local revenue from the vendors because the ministry had not allowed us to do so. This has caused a loss of local revenue worth Shs1.6 billion. We have been struggling to pay for utilities such as water and electricity,” Ms Barekye said.
In response, Mr Magyezi ordered Kabale Municipal Council leaders to begin collecting revenue from the vendors effective June 1 for the smooth running of the market.
“We could not allow Kabale Municipal Council leaders to collect taxes from vendors because our ministry had not verified them to establish if they are the true beneficiaries of lock-up shops and stalls. The vendor verification exercise will be conducted for two days and every beneficiary must present documents proving true ownership,” Mr Magyezi said.
He added that vendors who fail to prove ownership will be thrown out of the market and their lockups and stalls shall be allocated to other vendors. He also directed that lockup shops that have not been opened in the last three months be re-allocated to the willing vendors.
He emphasised that the newly constructed Kabale Central Market was designed to benefit local traders and anyone found sub-renting the allocated stall or lock-up shops would lose it to other tenants.
“I have received information that some vendors are sub-renting their allocated stalls and lockup shops and earning between Shs4m and Shs6m per year. I have also received information that some tenants are paying about Shs1.5m per month to the landlords. This is not acceptable because sub-renting a government facility is unlawful and the culprits are risking losing the allocated workplaces to other tenants,” Mr Magyezi added.
He also said after the vendor verification exercise, the traders who used to own lockup shops before the old central market was demolished would be prioritised since the law recognises them as seating tenants.
Traders, who included Annet Kabagambe, Pamela Byensi, Jack Kiiza and Judith Arinaitwe, welcomed the minister’s directive on vendor verification but questioned the use of the vendors’ register earlier generated by Kabale Municipal Council, which they argued that it contained illegal beneficiaries.
In response, Mr Magyezi said he would compare the used register, the one he independently got, and the one generated by the vendors’ association to ensure that the right beneficiaries are included in the verification exercise.
For More News And Analysis About Uganda Follow Africa-Press
