According to records, the computerized system is yet to effectively bridge the revenue leakages in Masaka city, hence failing to meet its local revenue collection targets.
Masaka City Council
has continued to struggle with local revenue collection shortfalls despite the
installation of the e-tax assessment and collection system.
In 2020, the
council introduced the Integrated Revenue Management System-IRAS; a web and
mobile application platform where the taxpayers are digitally assessed, and given
unique codes which are used to pay the revenue through the bank or via mobile
money platforms.
According to records, the computerized system is yet to effectively bridge the
revenue leakages in Masaka city, hence failing to meet its local revenue collection
targets.
For instance,
in the 2021/22 financial year approved budget, Masaka City anticipated
collecting 5.48 billion shillings from its local revenue sources such as
trading license fees, billboards, hotel tax, property tax, local service tax, fines
and penalties among others, but it only realized 2.45 billion shillings.
In the
subsequent financial year 2022/23, out of a targeted 5.7 billion, the City
realized 3.74 billion shillings leaving a shortfall of at least 2 billion
shillings.
Peter Ntenge,
the Director of Batata Company Limited, a firm that was hired to mobilize local
revenue payment in the area says that there are existential structural
loopholes through which substantial sums of money are being lost.
According to
Ntenge, some of the city’s technical staff are stealthily circumventing the
digital system to collect money from taxpayers and issue them with manual
receipts, whose payments are not entered.
He explains that besides staff in City Treasury who take advantage of
business owners who are not yet acquainted with the digitalized payment system,
there are also several reports of Town Agents who have continued with habits of
picking money from different taxpayers, but not depositing the money in the city
collection accounts.
To his surprise; Ntege says that some taxpayers are also confessing that they
are used to meeting the revenue obligations in monthly and quarterly
installments and that many of them are issued with receipts and license forms
with City council stamps.
//Cue in: “abantu balaga okuwa…..
Cue out; …..muntu mulala.”//
According to
him, with the recent expansion of Masaka City’s geographical boundaries,
coupled with ongoing physical infrastructure developments and several
businesses that have been attracted, the urban council is capable of increasing
its local revenue collections, only if the structural leakages can be bridged.
Florence
Namayanja, the Masaka City Mayor says she is equally concerned about the local
revenue collection shortfalls, however indicating that they doing everything
possible to close the gaps in the system.
She says
that besides carrying public sensitization campaign to popularize digital tax
payment processes, the city is in the final stages of developing a
comprehensive tax valuation roll, which she says will provide a conclusive
solution to theft and misappropriation of revenues by staff.
She explains
that in addition to the valuation roll, they are also updating the city’s
assets and business register, which will help them get actual statistics
concerning the local revenue base hence simplifying follow-ups on all payments.
Geoffrey
Bemanyisa the Masaka City Clerk says his office is going to institute an
inquiry into the allegations labeled against staff and will accordingly take
administrative action on the culprits.
