Lira To Lose Sh466m In Graduated Tax Cut

Apr 30, 2002

LIRA district will lose sh466m this financial year as a result of the lowering of the graduated tax threshold announced by the ministry of local government, reports Joe Erem-Oyie.

LIRA district will lose sh466m this financial year as a result of the lowering of the graduated tax threshold announced by the ministry of local government, reports Joe Erem-Oyie.The district Chief Administrative Officer, Dan Odwedo, said of the sh729m estimated graduated tax revenue for 2001/2002, the district expects only sh263m.He said the district will at most operate at 36% of the planned capacity. Under the latest tax adjustment announced by minister Jaberi Bidandi Ssali, up to 60% of taxpayers in Lira will pay sh3,000.Odwedo said with only two months to the end of the financial year, the district had realised a paltry 8% of local revenue. He said this had dangerous implications over the operation of the district council which is limited by law to spend up to 20% of local revenue.He added that due to the politics and elections of 2001 and 2002, local revenue collection was hampered. Odwedo said there will be a surcharge on taxpayers who will not have paid by June 1.Ends

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