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Butambala Struggles to Identify Sources of Revenue :: Uganda Radionetwork

Butambala Struggles to Identify Sources of Revenue

According to available records, the district is mainly collecting local service tax and operation licenses whose rates are poor.
Edward Musingye, Butambala District Chief Administrative Officer

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Butambala district is struggling to identify sources of local revenue to deliver services to the public.

According to available records, the district is mainly collecting local service tax and operation licenses whose rates are poor.

In the last year financial year, the district introduced Boda Boda tax where every cyclist was supposed to pay 15,000 shillings. 

However, the district has since failed to collect any single money and have replaced it with Site Development Tax.   

The District Chief Administrative Officer Edward Musingye says the new tax which is fixed at 20,000 shillings is independent of the physical development fees. Musingye explains that after attaining approval from the physical planning office, one will be obliged to pay the site development tax when they embark on construction.  

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Musingye says that although the district would want to deliver several services, they are constrained by meagre resources.

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However, even before the tax becomes effective, residents are expressing mixed reactions.

Abdu Mayanja, a resident of Gombe, says the said amount is also little for the benefit of their district. He says they advocated for the creation of the district, intending to get better services and anything which is pointing to same is welcomed.  

He notes that the introduction of the tax could be a wise observation by the leaders since the area is now attracting developers who are setting up building due to the newly constructed Mpigi-Butambala-Gomba road.  

Sowedi Wasswa Kirumira, also a resident of Gombe, says that they have paid taxes to the district since its creation but they are yet to get any services in return.

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Hajat Halima Nagawa, a resident of Kibibi, expresses worry that as the central government introduced more direct taxes, the local governments are also doing the same yet people’s livelihoods aren’t improving.   

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According to records, Butambala district has been performing poorly in collection of local revenue.

In financial year 2018/2019, the district projected to collect shillings 250 million but collected only 150 million. In the current financial year, the district has lowered its expectations to 130 million. 

Butambala’s main sources of revenue were taxis and markets whose collection was halted by the central government. Another source has been the sand pits, however, many of these have since been exhausted.  

Last year Kalungu and Lyantonde district came up with a proposal to tax all parties organized within the district at a rate ranging between shillings 20,000 and shillings 100,000.

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