UGANDA, Fort Portal | Real Muloodi News | Property owners and residents in Fort Portal City, located in western Uganda, engaged in a discussion with city officials about perceived high property taxes, particularly given current economic challenges.
Fort Portal landlords have voiced concerns about the lack of a standardised fee structure and are calling for a reevaluation of tax rates to ensure fairness and affordability.
This gathering was orchestrated by RippleNami, a for-profit entity, as part of the “Service and Fair Tax for Property Owners” project, funded by the United States Agency for International Development (USAID).
The goal is to distribute the tax burden more equitably among property owners.
Jackson Kasiime, a resident, said, “Previously, I would pay Shs 170,000, but now I’m required to pay Shs 700,000 for the same property.”
Fort Portal City Mayor Edison Asaba Ruyonga responded, explaining that the city’s five per cent property tax rate is lower than other cities that charge up to 10%.
He emphasised the importance of property taxes in funding essential city services like garbage collection and urban beautification.
Ruyonga also acknowledged concerns about tax evasion and improper evaluations, often arising from collusion between tax collectors and property owners.
As a solution, the city has adopted a digital tax collection system to enhance transparency.
Understanding how properties are valued for taxation is crucial.
Government-certified valuers assess properties based on size, location, condition, and market value.
Property owners can also claim deductions for legitimate expenses related to property maintenance, potentially reducing their tax liability.
Once assessments are complete, they are made public, and property owners can file objections if they disagree with the valuation.
Kamurasi Badru Muhammed, a property owner with disabilities, appealed for tax relief, highlighting the financial vulnerabilities faced by this group.
“In real estate, we’re vulnerable. We’re appealing to be exempted from such tax,” he stated.
Importantly, in Uganda, property taxes primarily target commercial properties, not owner-occupied residences.
This approach aims to balance the need for revenue with maintaining affordable housing.
Property tax revenue is vital for essential city services.
It funds garbage collection, street lighting, road maintenance, and urban infrastructure development.
Recognising the link between property taxes and city services’ quality is essential.
The dialogue between Fort Portal landlords and city officials represents an ongoing effort to balance tax revenue needs with the economic challenges faced by property owners.
The system is designed to offer due process, allowing appeals and ensuring that taxes contribute to urban betterment.
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