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Iganga Municipality Loses Over UGX 1 Billion in Fake Receipts :: Uganda Radionetwork
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Iganga Municipality Loses Over UGX 1 Billion in Fake Receipts

Michael Lugada, a taxi driver blames the revenue loss on municipal officials. He says several politicians in the municipality compete for tenders and remit less to the municipality, which affects the projected revenue collection.

Audio 4

Iganga Municipality registered a loss of more than Shillings 1 billion in local revenue in the 2014/15 and 2015/16 financial years due to the issuance of fake receipts.

 

 

In the audit report for the financial year ended December 2016, the Auditor General notes that while the municipality should collect between Shillings 1.5 billion and 2 billion annually in local revenue, only Shillings 700 million was collected in 2015/2016 financial year.

 

 

He attributes this to undervaluing of businesses and issuance of fake receipts. The taxes accrue from property rates, planning fees and trading licenses among other sources. James Luyimbazi, the Town Clerk Iganga Municipality, says the challenge of fake receipts is real.

 

//Cue in: “Reason why some...

Cue out...issue a receipt,”//

 

He says they are investigating 15 municipal officials including planners, cashiers, and surveyors who were involved in the local revenue collection. Luyimbazi says those found guilty of meddling in the local revenue collection will be subjected to disciplinary action.

 

 

Luyimbazi says they have resolved that each trader deposits money directly to the bank to contain the theft.

 

 

//Cue in: “So this time...

Cue out...in revenue collection,”//

 

 

However, some traders oppose the decision by the municipality to force them to bank taxes, saying some of them are illiterate. Brenda Namukasa, owns a boutique along Mukwaya road. According to Namukasa, compelling them to pay taxes in banks, will be burdening them since she is alone in her shop.

 

“My customers will come here when I'm away. In any case is it my obligation to take the taxes to them or they are supposed to pick it from here?,” she asked. Abdul Kasiko, another trader says it is the obligation of government to collect taxes.

//Cue in: “Waliwo omuntu alina...

Cue out...in Iganga town,”//

 

Michael Lugada, a taxi driver blames the revenue loss on municipal officials. He says several politicians in the municipality compete for tenders and remit less to the municipality, which affects the projected revenue collection.

 

//Cue in: “But you see...

Cue out...okusasula amasanyaleze,”//

 

Luyimbazi is considering convening a stakeholder's meeting to find a last solution to the problem and work for the municipality and traders..

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