{"id":24419,"date":"2022-01-10T13:48:31","date_gmt":"2022-01-10T13:48:31","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/?p=24419"},"modified":"2022-01-10T12:28:44","modified_gmt":"2022-01-10T12:28:44","slug":"districts-feel-pinch-of-low-revenue-collection","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/districts-feel-pinch-of-low-revenue-collection","title":{"rendered":"Districts feel pinch of low revenue collection"},"content":{"rendered":"

Africa-Press – Uganda. <\/strong><\/span>Several districts countrywide have failed to hit revenue collection targets due to a number of challenges, among which include the Covid-19 pandemic.<\/p>\n

Additionally, activities of many local governments have suffered budget cuts due to lack of resources.<\/p>\n

Local revenue constitutes about 2 percent of a district\u2019s annual budget and failure to realise it affects implementation of activities locally financed.<\/p>\n

In the 2020\/2021 Financial Year, Lyantonde District had projected to collect Shs179m from local revenue but got only Shs71m due to the effects of Covid-19 confinement measures.<\/p>\n

As a result, the construction of Lyakajula Secondary School in Lyakajula Sub-county and Kashagama Secondary School in Kashagama Sub-county, stalled due to lack of funds.<\/p>\n

The poor revenue collection also affected the construction of many community access roads in the district and as such many are in a sorry state.<\/p>\n

Just like other districts, Lyantonde is financed by conditional and unconditional grants from the central government, donors and locally generated revenue from taxes, fees, licences and market dues.<\/p>\n

Mr Alfred Mutebi, the Lyantonde District vice chairperson, said the district revenue dropped partly because of the continuous outbreak of Foot-and-Mouth (FMD) disease which has resulted in the closure of cattle markets.<\/p>\n

\u201cLyantonde wouldn\u2019t be doing poorly in tax collection, but we are disturbed by FMD which saw our biggest cattle markets closed,\u201d Mr Mutebi said.<\/p>\n

Cattle markets are the biggest revenue sources for Lyantonde. For instance, Kyemamba and Kashagama markets alone generate Shs34m every month.<\/p>\n

Way forward<\/p>\n

However, Mr Mutebi said the district has formed a revenue committee to help identify new potential revenue sources. The committee is supervised by the Chief Administrative Officer (CAO).<\/p>\n

To boost the local revenue base, he said, the district would soon begin renting out some of its property including houses.<\/p>\n

The Chief Administrative Officer of Kabale, Mr Edmund Ntimba, said poor local revenue collection due to Covid-19 lockdown has slightly affected service delivery in Kabale as technocrats were not able to monitor the ongoing central government funded projects.<\/p>\n

However, despite the challenges, Mr Ntimba said several government projects such as the construction of Buhara Seed School, Kitooma and Buramba Health Centre IIIs and pit-latrines in different primary schools were completed.<\/p>\n

The Rukiga District LC5 chairperson, Mr Robert Mbabazi Kakwerere, said poor revenue collection has not affected service delivery in their area because several projects were financed by the central government.<\/p>\n

His Kisoro counterpart, Mr Abel Bizimana, blamed the poor revenue collection on the country\u2019s poor taxation policy.<\/p>\n

\u201cSome government agencies such as the Uganda Revenue Authority are collecting taxes from shopkeepers whom the local government also targets for trading licences and it makes taxpayers develop a negative attitude that leads to tax evasion,\u201d he said.<\/p>\n

The Tororo District chief administrative officer, Mr Dunstan Balaba, said implementation of most locally financed projects in the last financial years stalled due to inadequate funds.<\/p>\n

Mr Balaba said before the Covid-19 outbreak, Tororo District had anticipated to collect Shs2.3b from local revenue but only realised Shs938.8 million.<\/p>\n

\u201cWe have running projects but unfortunately we have recorded a drastic decline in local revenue collection. Can you imagine that we held a budget conference and we realised that the collection had dropped to Shs695 million?\u2019\u2019 Mr Balaba added.<\/p>\n

\u201cYou will be surprised that I pay my district councillors Shs50,000 per sitting and transport refund of Shs30,000 of which sometimes they sit in arrears. Even the previous councillors left council while demanding their arrears. Thank God that most of them never made it back otherwise some of them would take us to court,\u201d he said.<\/p>\n

Also, following the outbreak of coronavirus in the country in March 2020, the share of the national budget allocated to local government programmes reduced to 9 percent from 10 percent in the previous financial year.<\/p>\n

The money was reduced to enable the country to battle the pandemic that has so far killed more than 3,300 people and infected more than 145,900 others.<\/p>\n

Mr David Kennedy Odongo, the Alebtong LC5 chairman, also the chairperson of all the nine district chairpersons in the Lango Sub-region, said the country cannot realise any efficient service delivery because of the budget cuts.<\/p>\n

\u201cMeeting expectations with a meager budget is next to impossible,\u201d he said.<\/p>\n

The Katakwi District LC5 chairman, Mr Geoffrey Omolo, said: \u201c2020 and 2021 have been the years of gambling. We hope this global pandemic is brought under complete control.\u201d<\/p>\n

Mr Simon Nangiro, the president of Moroto Development Forum, said although affected by Covid-19, the money which municipalities and town councils collect from local revenue is sent to Kampala as per policy.<\/p>\n

\u201cAnd what is brought back to help in the implementation of the projects at the districts and the municipalities is very little,\u201d he said.<\/p>\n

Mr Ismail Mohamed, the mayor of Moroto Municipal Council, said: \u201cWe are appealing to the government to allow us to utilise the revenue that we collect so that we can be able to implement some of the projects in our area.\u201d<\/p>\n

The Hoima City mayor, Mr Brian Kaboyo, said they are finding it hard to implement some activities that get a vote from local revenue.<\/p>\n

In the last quarter of 2020\/2021, Hoima City had projected to collect Shs500m from local revenue but due to Covid-19, they realised only Shs200m.<\/p>\n

\u201cWe use local revenue to collect garbage in the city and you can\u2019t suspend such an activity. We have decided to adjust on some of the planned activities to see that we continue operating,\u201d Mr Kaboyo said.<\/p>\n

The chairperson of Bigodi Town Council in Kamwenge District, Mr Adolf Magoba, said their biggest tax base was on tourism and during the peak of the pandemic, the tourists cancelled their visits.<\/p>\n

He said before Covid-19, they could collect about Shs7.2m in a quarter but currently they collect between Shs1m and Shs1.5m only.<\/p>\n

\u201cOur town council largely depends on local revenue collected from local tourism because we are bordering Kibale National Park. We now depend on emergency funds we lobby from different ministries,\u201d Mr Magoba added.<\/p>\n

Mr David Kor, the chairperson of Kanara Town Council in Ntoroko District, said floods and Covid-19 pandemic affected their local revenue collection.<\/p>\n

Mr Kor revealed that fish markets which used to generate Shs12m in a quarter are now giving them only Shs2m.<\/p>\n

\u201cFor loading and off-loading at the landing sites, we used to collect Shs9m but it has now reduced to between Shs1m and Shs2.5m,\u201d he said.<\/p>\n

Mr Aron Turahi, the Isingiro District LC5 chairperson, said they were unable to fund council meetings because of the limited resource envelope.<\/p>\n

\u201cThe district public accounts committee could not meet because they are funded by local revenue, and the district land board sat only twice last year which affected service delivery,\u201d he said.<\/p>\n

The Rubirizi District LC5 chairperson, Mr Sylvester Agubanshongorera, acknowledged poor revenue collection has crippled service delivery.<\/p>\n

\u201cWe did not do capacity building, we are facing difficulties in trying to maintain our roads,\u201d he said.<\/p>\n

Ms Jemmimah Tumwijukye Buhanda, the Sheema District LC5 chairperson, said: \u201cThe district is facing challenges in paying councillors\u2019 allowances because 20 percent of local revenue is used for paying them, monitoring of government projects and maintaining feeder roads.\u201d<\/p>\n

Technology & innovation<\/p>\n

Meanwhile, Gulu City Council has embarked on digital revenue collection. The measure is aimed at ending tendencies of corruption among officials and also boosting revenue collection which has significantly dropped since the country went into Covid-19 lockdown in March 2020.<\/p>\n

Mr Alfred Okwonga, the Gulu City mayor, said the new initiative will enable them to spend less on human resources.<\/p>\n

\u201cHuman resources usually consume more than half of the revenue collected leading to poor service delivery to the community. We are looking at alternatives that are easily accessible to taxpayers and the tax collectors,\u201d he said.<\/p>\n

Mr Christopher Opio Atekere, the Gulu LC5 chairman, said sub-county and parish chiefs had faked receipts for themselves to benefit themselves.<\/p>\n

Mr Walter Akena, a researcher, said local governments can eliminate corrupt practices during revenue collections but asked the authorities to create more revenue streams to boost collections.<\/p>\n

Compiled by Bill Oketch, Fred Wambede, Joseph Omollo, Cleophas Tukamarwa, Robert Muhereza, Emmanuel Arineitwe, Leonard Mbishinzimana, Alex Ashaba, Steven Ariong, Simon Peter Emwamu, Ismail Bategeka, Felix Ainebyoona, Milton Bandiho, Elly Karenzi, Taibot Marko & Tobbias Jolly Owiny<\/p>\n

For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. Several districts countrywide have failed to hit revenue collection targets due to a number of challenges, among which include the Covid-19 pandemic. Additionally, activities of many local governments have suffered budget cuts due to lack of resources. Local revenue constitutes about 2 percent of a district\u2019s annual budget and failure to realise […]<\/p>\n","protected":false},"author":84,"featured_media":24418,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[233,240,234],"class_list":["post-24419","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nDistricts feel pinch of low revenue collection - Uganda<\/title>\n<meta name=\"description\" content=\"Several districts countrywide have failed to hit revenue collection targets due to a number of challenges, among which i ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/districts-feel-pinch-of-low-revenue-collection\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Districts feel pinch of low revenue collection\" \/>\n<meta property=\"og:description\" content=\"Several districts countrywide have failed to hit revenue collection targets due to a number of challenges, among which i ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/districts-feel-pinch-of-low-revenue-collection\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-10T13:48:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2022\/01\/img-61dc265f98df5.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/districts-feel-pinch-of-low-revenue-collection#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/districts-feel-pinch-of-low-revenue-collection\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Districts feel pinch of low revenue collection\",\"datePublished\":\"2022-01-10T13:48:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/districts-feel-pinch-of-low-revenue-collection\"},\"wordCount\":1395,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/districts-feel-pinch-of-low-revenue-collection#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2022\/01\/img-61dc265f98df5.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/districts-feel-pinch-of-low-revenue-collection#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/districts-feel-pinch-of-low-revenue-collection\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/districts-feel-pinch-of-low-revenue-collection\",\"name\":\"Districts feel pinch of low revenue collection - 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