Jennifer Musisi the Executive Director, KCCA
Kampala Capital City Authority and the Solicitor General’s office are at loggerheads over the payment of property tax by educational institutions endowed by government.
An interpretation by the Solicitor General in September last year of the local governments rating act 2005 established that institutions that receive endowments from the government are exempted from paying tax..
This is an opinion that officials from KCCA have sharply criticized arguing that grants from the government are not endowments, the Executive Director, Jennifer Musisi asserts that these institutions make money from tuition and use city services making them liable to pay tax for these services.
The matter came to light when the officials appeared before the Committee of Statutory Authority and State Enterprises (COSASE) to respond to queries in auditor general’s report for the year 2013/14.
The report notes that city revenue amounting to 63.2 billion shs remained uncollected, this figure rose to 77bn shs the next year.
The city authority officials highlighted the challenges they face in collecting revenue and interventions they are putting in place to increase revenue collections.
Musisi expressed her disapproval of the solicitor general’s opinion.
Musisi also requested for an amendment to the law with regard to exempting properties in the city that are occupied by their owners. She argued that the law should be reviewed such that the rates are scaled in a progressive manner.
KCCA has always raised concerns about this law since owners of residential dodge payment of rates by claiming that they live in the houses and yet they rent them out.
She pointed an accusing finger at the affluent neighborhoods that she claims are not contributing any revenue to the city coffers.
MPs took exception to the fact that the government waived payment of property rate arrears in the FY 2015/2016 by government institutions and yet this money is appropriated.
The Committee Chairperson, Abdu Katuntu, was particularly displeased with this revelation.
He has requested for a list of defaulters of property rates to be presented tomorrow.