‘Local govt tax should wait’

Aug 15, 2007

<b>Ibanda</b><br><br>The LC5 chairman, Melchiadis Kajwengye, has expressed doubt about the capacity of the district local governments to collect the local service tax.

Ibanda

By Raymond Baguma

The LC5 chairman, Melchiadis Kajwengye, has expressed doubt about the capacity of the district local governments to collect the local service tax.

Kajwengye was recently having a brief discussion with the micro-finance state minister, Salim Saleh, during the handover of motorcycles for the Bonna Bagaggawale (Prosperity-for-All) programme.

While presenting this year’s budget in June, the finance minister, Dr Ezra Suruma, announced the introduction of the local government tax to replace the graduated tax that was scrapped last year.

The tax will be levied on the wealth and incomes of people in gainful employment, the self-employed and practising professionals, artisans, business people and commercial farmers.

Kajwengye said the local service tax will be hard to collect. “We need some time to sensitise the people.”

The chief administrative officer, Wilson Tibugyenda, also said they had received no guidelines from the central government on how it should be levied or collected.

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