Arua rejects development tax

Jun 20, 2001

THE Arua district local council on Thursday rejected the proposal by the finance secretary to introduce a development

By Sam Kakondah and Ahmed Angulibo THE Arua district local council on Thursday rejected the proposal by the finance secretary to introduce a development tax of sh2000 per tax payer for the construction of a council hall. The tax which would raise sh80m was rejected on grounds that tax payers are too poor to afford it. A council sitting passed a sh27b budget with amendments. The council resolved that surcharges on tax defaulters be effected from December 2001 and that tax defaulters should not be arrested. The finance secretary, Bernard Murozi, said priority will be given to health, education, rural feeder roads, rural water, agricultural extension services, primary health care, food security and bridge construction. He said he hoped to raise a total of sh1,499,000,000 out of local revenue, and to receive sh20,047,909,200 from the central government transfers and 5,598,599,823 from donor funds. "The overall revenue collection as at May 30 2001 stood at sh17,702,624,492 out of the expected sh26,267,870,000 representing 67.6% of the estimates, Murozi said. Of the total receipt of sh17,702,624,492, local revenue accounted for 4.3%, central government transfers accounted for 88.2% and donor funds accounted for 7.5%," he said. Most districts read their budgets on Thursday to coincide with the national budget read by Mr. Gerald Ssendaula. Ends

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