UGANDA, Gulu | Real Muloodi News | Gulu City, part of the government’s initiative to boost property tax collections in selected cities, has witnessed a substantial increase in local revenue collections, totalling USh3.2 billion during the 2022/23 Financial Year.
This notable achievement is primarily attributed to the successful adoption of the Integrated Revenue Administration System (IRAS) introduced by the Ministry of Finance.
The implementation of the IRAS has played a pivotal role in propelling Gulu City’s revenue collection efforts, reaching an impressive USh3.2 billion in the last financial year. This Ministry of Finance initiative has effectively streamlined and automated the revenue collection process, eliminating the need for physical transactions between taxpayers and collectors.
Gulu City stands among the ten cities, including Mbale, Mbarara, Jinja, Arua, Fort Portal, Masaka, Hoima, Soroti, and Lira, where the government aims to increase property tax collections over the next five years.
Since 2022, the government, in collaboration with various stakeholders, has undertaken the mapping and updating of existing property valuation registers, a crucial step to facilitate property rate levies.
This mapping initiative aligns with the broader Domestic Revenue Mobilisation for Development (DRM4D) strategy, which aims to foster self-financing capabilities among cities.
In some cities, the mapping process has been completed, followed by sensitisation efforts. Hoima City, for instance, witnessed the ‘Services and Fair Tax for Property Owners’ campaign organised by RippleNami Uganda with the support of USAID’s DRM4D activity.
Mayor Alfred Okwonga expressed satisfaction with the “remarkable success in revenue collection” for Gulu City, commending the citizens for their compliance and contributions to the local community.
He highlighted that property rates constitute a substantial revenue stream for local governments, with at least 85 per cent of the proceeds allocated to vital projects.
The funds collected play a crucial role in supporting various city services, including road and drainage construction and maintenance, water and sanitation projects, local healthcare initiatives, city planning, street cleaning, payment of street lighting fees, market development, and security improvements.
The Gulu City Council, aiming to optimise property tax collection, was granted a private license in October 2023. By January 2024, the city had amassed 451,630,160 Ugandan shillings, surpassing records from the previous fiscal year.
Residents, represented by Mark Moro of the Uganda National Chamber of Commerce, Gulu chapter, have advocated for transparency in financial reporting, emphasising the importance of accountability in the utilisation of locally collected funds.
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