UGANDA, Gulu | Real Muloodi News | Gulu City is anticipating revenues of at least USh3.7 billion from property rates in the upcoming 2023/24 financial year.
This projection is part of Gulu City’s broader plan to boost its revenue capacity and work toward becoming a self-financing city under the Domestic Revenue Mobilisation for Development strategy.
George Kidega, the Finance Manager of Gulu City, stated, “We project to mobilise at least USh3.7 billion. If we achieve 100 percent collection, then we shall obviously hit our targets. We are already studying the implementation to see where we are and how we shall manage.”
He emphasised the significance of the mapping and valuation process in incorporating new properties into the taxable fold.
Low tax collection has been a significant challenge for newly established cities like Gulu, hampering their efforts to enhance service delivery.
Consequently, the government is pinning its hopes on the Domestic Revenue Mobilisation for Development strategy to increase revenue collections among local governments from a combined sum of just USh50 billion to at least USh300 billion in the next five years.
However, the Local Government Finance Commission recently stressed that reaching the USh300 billion target will require certain measures.
These include maintaining up-to-date property registrations, computerising property registers for efficient and comprehensive collections, consistently valuing properties, and automating property rate administration using the Integrated Revenue Administration system.
Mr. Kidega revealed that the district finance commission has recently agreed on an 8 percent property tax rate, which will be a key driver in achieving the projected revenue collections.
Property rates constitute a substantial source of revenue for local governments, and full compliance plays a vital role in supporting service delivery.
A substantial portion, at least 85 percent, of property rate collections is channeled into various services such as road infrastructure, drainage systems, and street lighting, among others.
There are ongoing sensitisation efforts targeting property owners, as part of the ‘Services and Fair Tax for Property Owners’ campaign organised by RippleNami Uganda with the support of USAID’s Domestic Revenue Mobilisation for Development activity.
This initiative aims to strengthen dialogue and engagement between administrations and property owners to reinforce the social fiscal compacts related to service utilisation.
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