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KCCA improves property tax collection with 97% performance

Amid all the hullaballoo from the passing of the controversial Landlord and Tenant Bill, the Kampala Capital City Authority recorded its best performance over the last five years when it comes to collecting property tax, with the opportunity of beating its target for the year 2018/2019 well within its grasp.

According to a press statement from the authority, KCCA had collected Shs 31.1 billion in different property levies as at June 20, 2019, 10 days before the close of the financial year. This collection reflects a 97 per cent performance, the best over the last five years. The target is Shs 32.1 billion.

“The ongoing revaluation of properties which has so far been concluded in central and Nakawa divisions has had a significant bearing on the increasing revenue yield from property rates,” the statement explained.

About two years ago, KCCA embarked on a valuation exercise in order to, among other things, capture more people into the tax bracket. The exercise saw KCCA also targeting some residential properties. The argument then was that the residential property could turn into a commercial asset and, therefore, there was a need to undergo valuation.

To avoid paying any tax, residential owners were urged to notify the authority that they were still staying in their houses at the end of each year.

It added that other interventions such as the use of social media to remind taxpayers to pay up, intensified enforcement activities, among others.

KCCA says “property rates are currently the largest contributor to the local revenue collections for the city.”

The authority says their contribution to the overall revenue collections has shot up to 29.3 per cent in 2017/2018, from 19.8 per cent in 2016/2017.

Comments

0 #1 kabayekka 2019-07-22 13:53
This seems to be an African urban authority very determined to get a harvest where it does not sow. Where exactly is the KCCA housing project that provides housing for the modern working class Africans to reside in the hot climates of the tropical world?

One remembers very well those times when prefabricated housing was the future of cheap housing and environmental friendly for the millions of Africans who wanted to upgrade their mud and wattle African housing.
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0 #2 kabayekka 2019-07-22 13:59
If this urban authority decided to put up prefabricated housing from this hot potato revenue right now, and even made a factory for such housing for the public, it would recover a great deal of revenue that would help to change this city into a modern habitable environment.
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0 #3 Moses Nsereko 2019-07-23 15:35
I have been confused with the nresidential property tax.

First of all how do you determine the income from these properties when people are so poor to the extend of running away with arrears.

The system to me is wrong because in Europe for example the tenant is liable to pay the council tax because it is him/her who lives in that property..
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