Mukono gets sh406m tax compensation

Dec 17, 2008

Mukono district has received sh406m to support developmental activities. The money is part of the sh10b the Government released to all districts as Graduated Tax compensation.

By Alex Bukumunhe

Mukono district has received sh406m to support developmental activities. The money is part of the sh10b the Government released to all districts as Graduated Tax compensation.

Sh193m will go to sub-counties, sh103m to town councils and sh106m will be retained at the district. The district council resolved to use sh1m on publicity, sh27m on salary arrears and sh12m on pensions.

A total of sh40m will be used to buy three vehicles to ease the monitoring of Government projects.

Asuman Muwumuza, the secretary for finance, said the local government ministry agreed to give the district a loan for three double cabin pickups, but the district had to pay 10% of the total value of each vehicle.

He said the lack of vehicles had affected the delivery of services. “The department of natural resource, which is responsible for revenue collection, has no vehicle.

“Other departments like finance and the council also need vehicles,” he said. The district speaker, James Kunobwa, said in addition to paying the pension and gratuity of its retired workers, the district had to pay the pension of over 1,500 workers who were retrenched in 2006.

Following the removal of Graduated Tax, the Government funds 98% of the district budget. Recently, the district passed a budget of sh33b for the 2008/2009 financial year.

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