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NSSF gives revenue body $10.37m loan

By Vision Reporter

Added 14th August 2008 03:00 AM

THE National Social Security Fund (NSSF) is to give the Uganda Revenue Authority (URA) a $10.37m (sh16.9b ) loan for construction of the authority’s headquarters in Nakawa.

THE National Social Security Fund (NSSF) is to give the Uganda Revenue Authority (URA) a $10.37m (sh16.9b ) loan for construction of the authority’s headquarters in Nakawa.

By Sylvia Juuko

THE National Social Security Fund (NSSF) is to give the Uganda Revenue Authority (URA) a $10.37m (sh16.9b ) loan for construction of the authority’s headquarters in Nakawa.

NSSF’s managing director, Jamwa Chandi, and URA’s commissioner general, Allen Kagina, signed the financing agreement at Worker’s House in Kampala on Wednesday.

Jamwa told a press briefing the loan would be paid over 15 years at an interest rate of 12% and a one off commitment fee of 0.2%.

“We are going to invest via a structured loan and secured loan to fund construction of the new head office. To prevent any risk in terms of interest rate, we are going to enter into an interest rate swap with an international bank so that we convert our income into a market floating rate,” he explained.

Jamwa said the loan was approved by the Solicitor General, finance ministry, the URA and NSSF boards.

The loan will be secured by a fixed charge on URA’s prime land in Nakawa where the facility will be constructed.
Flanked by his deputy, Prof. Mondo Kagonyera, Jamwa said the fund was sharing information with URA.

“The progress we have made on defaulters can be linked to assistance by URA. In the medium-term, we are looking at a World Bank proposal to work closer in terms of collections for NSSF and tax,” he stated.

Kagina said the new offices that would be constructed at the end of the year would save the agency sh2b in rent annually.

“In Kampala alone, we are paying sh1.75b rent annually. This amount of money is enough to pay off the loan over the 15 years. This does not include Entebbe or Mukono,” she said.

Kagina said all the URA offices in the six areas in Kampala and their offices in Mukono and Entebbe would be accommodated at the new premises.
“We will operate tax payer centres. They will be fully- equipped small offices that would be directly connected to Nakawa. They will handle the back-end work.”

“We plan an integrated tax payers system can link with Nakawa where our clients in the comfort of their offices or homes. This will be in place by June next year.”

“URA currently rents about 3,000 square meters on nine floors at Crested Towers. The new premises will create 9,000 square meters,” Kagina said.

She said at the time of completion of the offices, URA officers would have been sensitised to improve their services by shortening the time of clearing goods and processing transactions.

Following automation of data, the processing of Value Added Tax refunds will also be expedited.

NSSF gives revenue body $10.37m loan

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