UGANDA, Mbale | Real Muloodi News | The Mbale City authorities have closed over 200 business premises in Mission cell, Nakalole and Nkoma in the city’s Northern Division over ground rent arrears and lack of licences.
The senior assistant town clerk of Mbale City Northern Division, Martine Busiku, said that the operation to close the premises is to recover UGX 200 million in lost revenue due to tax evasion in the financial years 2020/2021 and 2021/2022 by the taxpayers who own the closed businesses.
Busiku added that the operation is still ongoing, and will cover the entire Northern Division. He urged those who have not yet cleared their tax obligations respond before any action is taken against them.
The town clerk added that projects like opening new roads, maintaining old roads, and paying councillors and other casual workers who work for the city have been affected by the non-compliant taxpayers.
The city lacks local revenue, which has halted activities that need money to run.
Samuel Wamundu is one of the affected persons at the mission cell whose business has been closed. He said that Covid-19 affected them greatly, which has caused a delay in clearing their tax dues.
He adds that most shops were closed during the lockdown because of the policy of essential and non-essential goods, so they were not earning during this period.
However, Abudala Magambo, the Northern City Division councillor who also doubles as the Deputy Speaker for Mbale City, accused the Northern Division authorities for closing the premises without carrying out any assessment first.
Magambo defended the taxpayers, saying that some traders have delayed paying ground rent and licenses because they are not aware of the tax liability they are required to pay.
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