Africa-Press – Uganda. Nebbi Municipality leaders have mooted plans to tax more than 2,000 commercial buildings to increase local revenue collection.
The authorities said if property tax is levied on property owners, the initiative would boost council activities and also spur development.
Speaking to the Monitor on Monday, the Nebbi Municipality Deputy Town Clerk, Mr Maliki Drakuma, said they are compelled to levy property tax due to the meagre revenue base.
“The council will tax all properties that are generating income to the owners and also commercial plots, which are being used for businesses such as washing bays. We are waiting for the chief government valuer to start the assessment process before taxation starts,” Mr Drakuma said.
He said they plan to utilise the taxes to construct market shades, improve health service delivery in all the divisions and pay emoluments for councillors, among others.
In the last financial year, due to a poor revenue base, the council managed to collect Shs512 million instead of the projected revenue of Shs592 million, which the leadership said affected the council business.
Reacting to the planned tax, one of the property owners in the town, Mr Muzamil Odaga, said the property tax is a good move but added that the council must consider opening of access roads to attract more developers.
He added that the tax should be well managed without corruption and that there should be a plan for garbage trucks since garbage collection has remained a key challenge in the municipality. Mr Odaga also said there is need for sensitisation before implementation of the planned taxation.
But Ms Joyce Acaye, a resident of Nebbi Town said: “People are getting overwhelmed with these taxes. What benefit will these property owners get if the taxes are too much? The burden of paying school fees, medication, feeding and other things rest on these people, who are already burdened by heavy taxes.”
The Nebbi Municipality Mayor, Mr Geoffrey Ngiriker, said the council has projected to collect more than Shs200 million from the property tax to be collected annually.
He said the council has proposed Shs10,000 to be charged on both commercial and rental houses that are generating income to the property owners within the town.
“We plan to construct the division headquarters of Abindu, Thatha and Central but due to poor revenue sources, the construction of these division headquarters is halted. If the property tax is well implemented, this would bridge the financial gaps of the council,” he said.
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