Comment: Don’t divert tax compenstation
Jun 27, 2007
MANY sub-counties in the country are complaining that they are not receiving their share of graduated tax compensation funds. This fund was initiated when graduated tax was abolished two years ago.
MANY sub-counties in the country are complaining that they are not receiving their share of graduated tax compensation funds. This fund was initiated when graduated tax was abolished two years ago.
Districts claim that the sh45b given as graduated tax compensation last financial year, was still lower than the sh68b they were collecting from graduated tax before it was scrapped.
Although graduated tax was mainly a responsibility of sub-counties, some districts retained the sub-counties’ share and diverted it. This is very bad because the graduated tax compensation is one of the solid sources of funding for sub-counties.
Retaining it or diverting it at the district means that operations of sub-counties are seriously affected. Districts should realise that claiming that the amount given to them is very small should not be a reason to retain it.
Let them put this small amount on the table and agree on how to spend it with their colleagues at sub-county level. Districts should also realise that it is against the Local Government Financial Regulations to divert this money.
Districts claim that the sh45b given as graduated tax compensation last financial year, was still lower than the sh68b they were collecting from graduated tax before it was scrapped.
Although graduated tax was mainly a responsibility of sub-counties, some districts retained the sub-counties’ share and diverted it. This is very bad because the graduated tax compensation is one of the solid sources of funding for sub-counties.
Retaining it or diverting it at the district means that operations of sub-counties are seriously affected. Districts should realise that claiming that the amount given to them is very small should not be a reason to retain it.
Let them put this small amount on the table and agree on how to spend it with their colleagues at sub-county level. Districts should also realise that it is against the Local Government Financial Regulations to divert this money.