Low revenue collection worries Mpigi council
Jun 24, 2011
MPIGI district council is irked by the poor collection of local revenue. The district realises about sh200m in local revenue annually, which the council noted was inadequate to deliver services to the community.
By Florence Nakaayi Â
MPIGI district council is irked by the poor collection of local revenue. The district realises about sh200m in local revenue annually, which the council noted was inadequate to deliver services to the community.
During a meeting to present the 2011/2012 budget on Monday, the district chairman, John Mary Luwakanya, said they would set up a district revenue task force to sensitise residents on the relevance of paying taxes and to intensify collection enforcement.
The meeting took place at the district headquarters.
Finance secretary Joseph Mutabazi attributed the poor revenue collection to a high default rate among contracted revenue collectors, laxity in updating revenue registers, political influence and negative attitude by taxpayers towards paying taxes.
The district hopes to collect close to sh16b in 2011/2012. Over sh200m is expected to be raised from the local revenue sources, contributing only 1.2% of the total budget.
 Other sources include graduated tax compensation of sh400m, sh1.8 as unconditional grants, 13b as conditional grants from the Government and sh280m from donors. The council heard that 80% of the budget goes to payment of staff salaries.
Almost a half of the budget expenditure will be allocated to the education department, with sh7.3b. The health sector was allocated sh2.7b, sh1.4b went to production and NAADS got over sh1b.Â
Administration will consume sh1.7b, works sh2b, while community development services will got sh182m.
Luwakanya urged councillors to co-operate and work for the common good.
MPIGI district council is irked by the poor collection of local revenue. The district realises about sh200m in local revenue annually, which the council noted was inadequate to deliver services to the community.
During a meeting to present the 2011/2012 budget on Monday, the district chairman, John Mary Luwakanya, said they would set up a district revenue task force to sensitise residents on the relevance of paying taxes and to intensify collection enforcement.
The meeting took place at the district headquarters.
Finance secretary Joseph Mutabazi attributed the poor revenue collection to a high default rate among contracted revenue collectors, laxity in updating revenue registers, political influence and negative attitude by taxpayers towards paying taxes.
The district hopes to collect close to sh16b in 2011/2012. Over sh200m is expected to be raised from the local revenue sources, contributing only 1.2% of the total budget.
 Other sources include graduated tax compensation of sh400m, sh1.8 as unconditional grants, 13b as conditional grants from the Government and sh280m from donors. The council heard that 80% of the budget goes to payment of staff salaries.
Almost a half of the budget expenditure will be allocated to the education department, with sh7.3b. The health sector was allocated sh2.7b, sh1.4b went to production and NAADS got over sh1b.Â
Administration will consume sh1.7b, works sh2b, while community development services will got sh182m.
Luwakanya urged councillors to co-operate and work for the common good.