Zombo to generate over sh4bn district revenue from property tax

Mr Onencan Sadiki, The chairperson district finance planning and administration at Zombo District LG speaks to the Press on the prooperty rate sensitization program in Paidha town council

Zombo, (UG): Zombo District Local Government is set to collect nearly five billion shillings in revenue arising from tax on property within the district in a move to widen the tax base for its administrative functions.

In early July 2023, Zombo with support from the United Nations Capital Development Fund and Development Initiative for Northern Uganda, passed a resolution on Rateable Property tax of 5 per cent gross Rateable value of 1,702 already valued properties from the 15 lower local government administrative units.

5 per cent of the Rateable values of the 1,702 valued properties will generate local revenue of about 4.9 billion shillings. This will further bolster the 92 per cent local revenue generation performance of 2022/23 which had projections of 1.2 billion shillings and actual local revenue collection of 1.18 billion shillings by 30, June 2023.

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The exponential performance in local revenue collection is attributed to the strategic resource mobilization designs of the Integrated Revenue Administration System (IRAS) which was innovated to enhance local financing and service delivery( capital developments).

In an effort to improve local financing through revenue generation, the district council by statutory declaration is mandated to levy and appropriate taxes.

Mr. Hassan Ringtho, Zombo district council speaker quoted acting in accordance with relevant laws saying; “the law of Republic of Uganda, article 191 clause 1, permits levy and appropriation of taxes and also local government act Cap 2, 4(3) third schedule provides for the same.”

The district leadership says they now await notification from Ministry of Local Government on the final Property Rate lists as it vigorously conducts sensitization drives.

Mr Mustafa Ongom, District secretary of finance, planning and administration said the council chose 5 per cent of the net Rateable value for instance 5 per cent of 1 million shillings is Fifty thousand shillings.

Mr. Saddiki Onencan, the Chairperson committee of finance, planning and administration rallied property owners to form associations across the district.

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“They will sit down and look at the total money collected,25 per cent will go into administrative costs, 75 per cent will implement planned community-based activities, like solve the water crisis in identified villages etc,” Sadiki explained.

Paidha town council has the highest number of valued properties, 825 projected to generate about 3 billion shillings, and Abanga and Paidha subcounties with the least, 30 valued properties.

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