UGANDA, Mbarara | Real Muloodi News | The executive committee of the Mbarara City Council has put forward a proposal to introduce a new development permission tax aimed at enhancing local revenue generation and supporting infrastructural development within the city.
According to Ronald Taremwa, the Secretary for Finance and Administration, the proposed tax is set to be introduced under section 33(1) of the Physical Planning Act 2010 and will be administered by the physical planning committee.
The tax will require developers to obtain a development permission certificate before proceeding with their projects.
Under the new tax regime, developers will be categorised into two groups, with commercial and industrial permits priced at USh170,000, while other land use developments such as residential, institutional, and civic permits will cost USh150,000.
Taremwa emphasised that the revenue generated from this new tax, if approved by the council, will serve as a vital supplement to Mbarara City’s local revenue, contributing to the provision of improved services and the development of essential infrastructure.
Bonny Tashobya, the Speaker of Mbarara City Council, urged councillors to thoroughly review the draft budget estimates, emphasising the importance of increasing local revenue to enhance service delivery within the city.
“The introduction of new development permit fees is expected to bolster the city council’s revenue streams and facilitate the implementation of crucial infrastructural projects,” Tashobya stated.
Meanwhile, John Baptist Mujuni, the Secretary-General of the Mbarara City Development Forum, expressed the organisation’s intent to provide feedback to the city council regarding the proposed fees before their approval.
In addition to the proposal for the new development permission tax, Taremwa also presented a draft budget estimate for the financial year 2024/25, outlining a total resource envelope of USh45 billion.
The projection aims to collect USh10 billion from local revenue sources and receive an additional USh35 billion in funding from the central government.
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