Africa-Press – Uganda. Property tax payers in the western district of Mbarara, are advocating for equitable and fair taxes as the authorities commence carrying out property valuation processes in their area.
The tax valuation exercise that started in March this year and targeting properties to be taxed in the next five years, beginning the next financial year, is estimated to continue until June.
Today’s discussions in Mbarara city, seek to advocate for the rights of property tax payers to quality public services, while stressing fairness, equity, reciprocity and accountability from local government on how property rates are managed.
Speaking ahead of today’s civic engagement, Mr Samuel Rwakinanga Tayebwa, a revenue collection expert said: “Property rates are an important revenue source for the city, yet it continues to exhibit gaps.”
“We must stress fairness, equity, reciprocity and accountability to complement the current supply-side (local government authorities) and limitations with demand-side (taxpayers) solutions.” he added.
Mr Tayebwa further said everyone has an obligation to directly contribute to the tax purse and that there are few people contributing, yet demands are every day.
The Services and Fair Tax for Property Owners campaign seeks to engage property owners in a conversation that will deliver an effective tax sector to boost local services, which services impact the quality of life and health of residents.
Ms Priscah Mulongo, the deputy city mayor said Mbarara City’s total budget stands at shs45bn whereas a total of Shs9bn (approximately 20%), comes from local revenue collection realized from property rates, trading licenses and other taxes imposed on the business community within the city boundaries.”
She added that the tax collected, caters for infrastructure development like roads, and services like sanitation and garbage collection, antimalarial drugs and clean water, and security, among other services provided through the city council.
The comprehensive geographic information system (GIS) enabled property valuation exercise is being carried out by Knight Frank Uganda, with the support of USAID, as part of the Domestic Revenue Mobilization for Development (DRM4D) project.
The system will enable government identify individuals or corporations that have been underpaying their rental income tax obligations.
Feedback gathered before, during and after the event will be collated into a detailed report to inform the Mbarara City Authority; about gaps and opportunities in revenue generation and management of property tax, social fiscal compacts, and advocacy for increased spending based on the feedback from property taxpayers.
The civic engagement, which starts with Mbarara, is expected to take place in three other cities, among which include Gulu, Hoima and Fort-Portal.
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