The Uganda Revenue Authority (URA), has withdrawn 57 million shillings from Lira Municipality bank account, to recover VAT arrears.
During a council meeting today, the acting town clerk, Milton Obua, said the money was withdrawn from the municipality's bank account in DFCU Lira branch.
The money withdrawn from the account was originally planned for the School Facilitation Grants and Capacity Building.
Obua says the action by URA though unfavorable, has set the municipality free of any financial obligation to URA.
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The clampdown on the municipality's account is the latest in a series of tough measures taken by URA to recover money from Tax defaulters.
Early this month the revenue body blocked the Lira district account over failure to pay more than 400 million shillings in Value Added Tax (VAT) arrears.