HOIMA, UGANDA: As one way of generating tax revenue in the district, the Hoima district council has established a new tax on all vehicles transporting sugar cane within the district.
According to the members, the revenue collected will be used to extend road services in various areas and also rehabilitate roads that are in a sorry state with the District.
John Kwebembera the Hoima District councilor for Buseruka sub county said that many sugar cane transporting vehicles use the District roads and therefore as the government, they can collect revenue from these vehicles through taxing them.
“According to the revenue collected in this financial year sofer, it’s too less to finance the Hoima District Local Government projects and hence creating the need to look for more sources of revenue since the public finance Act mandates councilors to impose local taxes for some businesses”. Kwebembera said.
Meanwhile, Robert Baguma the Hoima District councilor for Kigorobya Town council says, the district has no alternative source of revenue and this has led to the failure of some government projects.
“Since we are in need of revenue to government projects and the law is mandating us, we are going to levy tax on sugar cane transporters so as to raise funds”. Baguma said.