Lukwago Blames Museveni For Kampala Tax Confusion

2379 Views Kampala, Uganda

In short
Tax operators are charged Uganda shillings 120,000 per month fee introduced in 2012. However, Kampala Capital City Authority Executive Director Jennifer Musisi says the authority has experienced over Uganda shillings 6 billion short fall recorded from July to October as result of tax operators refusal to pay monthly fee levied on them.

Kampala Lord Mayor Erias Lukwago has said president Museveni is the source of confusion in the city that resulted in the arrest of taxi operators who defied paying taxes for three months.

Tax operators are charged Uganda shillings 120,000 per month fee introduced in 2012. However, Kampala Capital City Authority Executive Director Jennifer Musisi says the authority has suffered over Uganda shillings 6 billion short fall in the last three months as result of tax operators refusal to pay monthly fee levied on them.

The taxi operators' defiance is informed by President Museveni directive that informal taxes be scrapped. In a letter dated July 22nd, 2017, Museveni wrote to the Prime Minister, Dr. Ruhakana Ruganda directing that government agencies shouldn't over tax informal sector players such as taxi operators, market and roadside vendors.

"As far as taxis are concerned, it should again be one fee for an annual licence. Once you have that licence, you should operate without hindrance on the route for which, you were licensed for the whole year…if the owner of the tax business makes profit out of his income, then the profit could be taxed…the daily taxation of operations must stop immediately," Museveni said.

The letter was construed by taxi operators that the taxes they were paying had been abolished. When tax operators blocked Museveni's convoy in town yesterday, he told them that he will meet their leadership very soon to address their concerns.

When taxi operators meet president Museveni, Lukwago says they should tell him to direct Musisi and Kampala Minister Beti Kamya to implement his orders.

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Lukwago argues that Musisi should not cry foul that taxi operators have refused to pay their dues. He says the city does not operate because of the taxes paid by informal sectors. He says KCCA operations should be financed by central government since most taxes that go to Uganda Revenue Authority coffers come from the city.

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This financial year, KCCA projects to collect Uganda shillings 122.8 billion from non-tax revenue. During the period from July to October, KCCA had projected to collect Uganda shillings 37.1 billion but only 23.6 billion was realised leaving a short fall of 13.5 billion. The Uganda shillings 6 billion that was supposed to be collected from the taxi drivers is part of the Uganda shillings 13.5 billion deficit.

 

About the author

Blanshe Musinguzi
Musinguzi Blanshe is a politics-cum-business journalist. He joined Uganda Radio Network in February 2017. Previously, he worked at Daily Monitor and Red Pepper Publications Limited. He is keenly interested in data journalism.