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Mateete Town Business Community Reject Property Tax

The failure by the business community and property owners to pay property service tax has created uncertainty and confusion in Mateete town council, Sembabule district.
some of the property owners in mateete town council

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The failure by the business community and property owners to pay property service tax has created uncertainty and confusion in Mateete town council, Sembabule district.

In June this year, council authorities resolved to levy a ten percent fee on the annual rental charges of each commercial building in Mateete town council to supplement the budget. The town council has an annual budget of 400 million shillings.

Authorities anticipated collecting at least 17 million shillings from this tax for the financial year 2013/2014, according to the town clerk Herbert Baguma.

However, the collection exercise has failed to take off as property owners and other business community rally behind local politicians to boycott it.

One of the property owners and area councilor Jude Kiganda says the tax is unrealistic. He adds that despite the financial constraints, low income earners cannot suddenly be subjected to a new tax without thorough public sensitization and consultation.

////Cue in; sincerely they……….

Cue out…we don’t know/////.

He urges that besides being exorbitant to the community, the town council technocrats have failed to show tangible services delivered from the money collected from usual tax collections

//Cue in; the tax is…….

Cue out…go ahead with it//.

Kizito Mugagga, another Property owner observes that the property tax is not fit for a growing town like Mateete. He says most of the houses in this town are used for retail businesses that cannot afford paying taxes above the trading licenses.

He adds that the tax in its current form affects both property owners and tenants, as it will translate into an increase in rental fees, thereby paralyzing investments in the area.

Herbert Baguma the Mateete town clerk explains that the new tax was endorsed by an act of parliament to facilitate social service delivery and development of town councils, and that as a new town council they need more money to execute works.

//Cue in; Being a new……..

Cue out; ……good to their side//.

 

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