Politicking hurts graduated tax revenue
Oct 24, 2003
THE Secretary General of Uganda Local Authorities Association (ULAA), Raphael Magezi, recently said local government revenue has drastically fallen because of the politicisation of graduated tax
By Charles Ariko
THE Secretary General of Uganda Local Authorities Association (ULAA), Raphael Magezi, recently said local government revenue has drastically fallen because of the politicisation of graduated tax.
“Collections have dropped to a record low of 5%-30% in the majority of the districts. This will have serious implications for decentralisation and the capacity of local governments to deliver on their mandates,†Magezi said.
He was on Tuesday addressing
clerks to district councils during a two-week training course on legal drafting skills at Sports View Hotel in Kireka.
He said due to poor revenue collections, districts were finding it difficult to implement government programmes that require local co-financing.
Magezi said the 10% co-financing requirement under the Local Government Develo-pment Programme (LGDP) was increasingly becoming impossible since many districts depended on the tax for revenues.
The course, facilitated by Owiny Dollo & Co Advocates, was funded by the European Union.
Magezi said recent assessment by the Ministry of Local Government had revealed that the 10% co-financing requirement could no longer be used as a realistic criterion of performance in local governments.
He said the Government should to re-consider its policy on conditional grants that limit local councils from allocating funds to identified priority areas.
“The unconditional grant for most of the districts is not enough to cover the wages of staff,†he said.
He said ULAA wanted the salaries of district chairpersons paid from the consolidated fund.
THE Secretary General of Uganda Local Authorities Association (ULAA), Raphael Magezi, recently said local government revenue has drastically fallen because of the politicisation of graduated tax.
“Collections have dropped to a record low of 5%-30% in the majority of the districts. This will have serious implications for decentralisation and the capacity of local governments to deliver on their mandates,†Magezi said.
He was on Tuesday addressing
clerks to district councils during a two-week training course on legal drafting skills at Sports View Hotel in Kireka.
He said due to poor revenue collections, districts were finding it difficult to implement government programmes that require local co-financing.
Magezi said the 10% co-financing requirement under the Local Government Develo-pment Programme (LGDP) was increasingly becoming impossible since many districts depended on the tax for revenues.
The course, facilitated by Owiny Dollo & Co Advocates, was funded by the European Union.
Magezi said recent assessment by the Ministry of Local Government had revealed that the 10% co-financing requirement could no longer be used as a realistic criterion of performance in local governments.
He said the Government should to re-consider its policy on conditional grants that limit local councils from allocating funds to identified priority areas.
“The unconditional grant for most of the districts is not enough to cover the wages of staff,†he said.
He said ULAA wanted the salaries of district chairpersons paid from the consolidated fund.