IBANDA LC5 chairman Melchiadis Kajwengye is doubting the capacity of district local governments, to collect the proposed local service tax.
Kajwengye was recently speaking at a handover ceremony of motorcycles for the Bonna bagagawale (Prosperity for All) programme. Salim Saleh, the microfinance state minister was present.
In the last budget, finance minister Ezra Suruma announced the proposed tax to replace the scrapped graduated tax and widen the revenue base for local governments.
The tax will be levied on wealth and incomes of people in gainful employment, self-employed and practising professionals, artisans, business people and commercial farmers.
Kagwengye said, â€œThe local service tax will be hard to collect. We need some time. sensitisation is needed first before it can be collected, especially the taxpayers who knew that graduated tax had gone.â€
The district Chief Administrative Officer, Wilson Tibugynenda also said they had not received guidelines from the central government ever since the tax was announced.
â€œWe have no guidelines yet we have to sensitise our people about the tax. We feel that technically, we have less time. We need time to allow us internalise the guidelines, talk to the population, start enumerations, assessments and tax appeals.â€
Sensitise locals on Local Service Tax â€“ Ibanda boss