How your leaders have utilised the 25% tax remittance
The Local Government Act provides that 25% of locally-generated revenue is remitted back to lower councils. While some councils have innovatively utilised the funds, some villages have never known such a remittance existed. Joshua Kato analyses how this money has been spent
The Local Government Act provides that 25% of locally-generated revenue is remitted back to lower councils. While some councils have innovatively utilised the funds, some villages have never known such a remittance existed. Joshua Kato analyses how this money has been spent...
According to the law, the village council decides how this money is used. However, even where the village councils have not been consulted, some local leaders have positively spent the money to improve the livelihood of the communities.
A case in point is Hassan Ssali, the LC1 chairman of Nambega Village, Nakaseke district. From a remittance of about sh80,000 on average per month, they have been able to construct clean water sources and a bridge on the main village road.
“We also bought lanterns, which can be used by villagers whenever there is a problem. With another remission, we bought big saucepans and plates, which people use at functions. However, we still need government support for bigger projects,†Ssali says.
Nambega has a population of around 150 people, but with no school or health centre.
“For many years, we have been trying to reconstruct our lives. My people have resorted to other income-generating activities.
Farming is their main source of income,†Ssali says. But farming is affected by several problems like lack of farm implements and value addition and poor prices.
“I call upon the Government to give my people a stable price for maize and rice. These are the most commonly grown crops.
Sometimes prices drop as low as sh100 and sh300 a kilogramme. The residents of Nambega are making losses,†he says.
“We also keep chicken, rear goats, cattle and sheep. NGOs like World Vision have given us hybrid goats,†he adds.
“We have set up several groups to help us gain from micro-finance institutions. I am encouraging residents to buy shares from the Kassangombe Savings and Credit Society. A share goes for sh10,000. This will help us tap money from the Ministry of Micro-Finance,†Ssali says.
“I have invited many people to sensitise residents on how to use loans. I am calling upon the Government and the micro-finance minister, Gen Salim Saleh, to consider us. Let them make the laws governing micro-finance quickly so that we start benefiting,†he says.
The villagers, like most people in the country, are eyeing the President’s Bonna baggawale project to redeem them from poverty. In Kakowekowe LC1 village, Kayunga district, the local leaders have not sat back to lament the scrapping of Graduated Tax. They have found other ways to generate income.
From a sh2,000 fine on people, who do not attend village meetings, the village has managed to extend clean water to the community and also construct the LC offices according to the LC1 chairman, Emmanuel Kayemba.
In some cases, however, the villagers have diverted the funds to more personal needs. In one of the villages in Luwero district, the villagers decided to spend the money on parties.
In many sub-counties, however, the money is never remitted to the villages. In urban areas, the 25% can amount to sh800,000.
Kawempe division in Kampala is an example where there money never reaches lower councils.
“We have never seen that money,†says Bernard Walusimbi, the LC1 chairman of Kanisa Zone, Kawempe.
In many villages, the money is shared amongst the executive. “I have never seen any development resulting from the 25% returns, yet this is a reasonable amount of money,†a man, who preferred anonymity, commented. According to Kawempe LC3 councillor Ahmed Katono, the division chairman, Nasser Takuba, discussed the issue with the LC1 chairmen and agreed that the money should be retained at the division.
Some councillors challenged it. However, according to Katono, it was agreed that the money be used to develop the entire division because it was established that villagers misappropriated by the funds,†Katono says.
In Kira Town Council, it was agreed that the funds be used to acquire a grader. “We have already identified the grader and shall buy it soon,†says the Mayor Mamerito Mugerwa.
It is estimated that the grader will cost sh400m, with at least half of the amount coming from the 25% remittance.
According to the law, the village council decides how this money is used. However, even where the village councils have not been consulted, some local leaders have positively spent the money to improve the livelihood of the communities.
A case in point is Hassan Ssali, the LC1 chairman of Nambega Village, Nakaseke district. From a remittance of about sh80,000 on average per month, they have been able to construct clean water sources and a bridge on the main village road.
“We also bought lanterns, which can be used by villagers whenever there is a problem. With another remission, we bought big saucepans and plates, which people use at functions. However, we still need government support for bigger projects,†Ssali says.
Nambega has a population of around 150 people, but with no school or health centre.
“For many years, we have been trying to reconstruct our lives. My people have resorted to other income-generating activities.
Farming is their main source of income,†Ssali says. But farming is affected by several problems like lack of farm implements and value addition and poor prices.
“I call upon the Government to give my people a stable price for maize and rice. These are the most commonly grown crops.
Sometimes prices drop as low as sh100 and sh300 a kilogramme. The residents of Nambega are making losses,†he says.
“We also keep chicken, rear goats, cattle and sheep. NGOs like World Vision have given us hybrid goats,†he adds.
“We have set up several groups to help us gain from micro-finance institutions. I am encouraging residents to buy shares from the Kassangombe Savings and Credit Society. A share goes for sh10,000. This will help us tap money from the Ministry of Micro-Finance,†Ssali says.
“I have invited many people to sensitise residents on how to use loans. I am calling upon the Government and the micro-finance minister, Gen Salim Saleh, to consider us. Let them make the laws governing micro-finance quickly so that we start benefiting,†he says.
The villagers, like most people in the country, are eyeing the President’s Bonna baggawale project to redeem them from poverty. In Kakowekowe LC1 village, Kayunga district, the local leaders have not sat back to lament the scrapping of Graduated Tax. They have found other ways to generate income.
From a sh2,000 fine on people, who do not attend village meetings, the village has managed to extend clean water to the community and also construct the LC offices according to the LC1 chairman, Emmanuel Kayemba.
In some cases, however, the villagers have diverted the funds to more personal needs. In one of the villages in Luwero district, the villagers decided to spend the money on parties.
In many sub-counties, however, the money is never remitted to the villages. In urban areas, the 25% can amount to sh800,000.
Kawempe division in Kampala is an example where there money never reaches lower councils.
“We have never seen that money,†says Bernard Walusimbi, the LC1 chairman of Kanisa Zone, Kawempe.
In many villages, the money is shared amongst the executive. “I have never seen any development resulting from the 25% returns, yet this is a reasonable amount of money,†a man, who preferred anonymity, commented. According to Kawempe LC3 councillor Ahmed Katono, the division chairman, Nasser Takuba, discussed the issue with the LC1 chairmen and agreed that the money should be retained at the division.
Some councillors challenged it. However, according to Katono, it was agreed that the money be used to develop the entire division because it was established that villagers misappropriated by the funds,†Katono says.
In Kira Town Council, it was agreed that the funds be used to acquire a grader. “We have already identified the grader and shall buy it soon,†says the Mayor Mamerito Mugerwa.
It is estimated that the grader will cost sh400m, with at least half of the amount coming from the 25% remittance.