The Mbarara
City Council executive committee has proposed to
introduce the development permission tax.
While
presenting the draft estimates of the revenue and expenditure for the financial
year 2024/25, the Secretary for Finance and Administration Ronald Taremwa told
the council that the new tax is being introduced under section 33 (1) of the
Physical Planning Act 2010. The new tax will be obtained
from the physical planning committee.
Under the new tax, a developer will obtain a development permission certificate.
The tax will also have two categories of permits. They are commercial and industrial permits will be charged 170,000
shillings, and other land use developments like residential, institutional, and
civic permits will be charged 150,000 shillings.
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Taremwa said
that the money raised from the new tax if approved by the council will supplement the local revenue of Mbarara City.
Bonny
Tashobya, the Speaker of Mbarara City Council, urged councilors to review the draft budget estimates, with a focus on increasing local
revenue to improve service delivery.
He mentioned
that the new development permit fees will increase the city council's revenue
and also ensure proper infrastructural development in the city.
John Baptist
Mujuni, the Secretary General of Mbarara City Development Forum said they will
offer their opinion to the city council before approving the fees.
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Taremwa also presented a draft budget estimate for the financial year 2024/25,
with a resource envelope of 45 billion shillings. The projection is to collect
10 billion shillings from local revenue and receive 35 billion shillings from
the central government.
