Defaulted property tax hits sh4b

Mar 12, 2008

KAMPALA City Council (KCC) is demanding sh4b from property tax defaulters. As a result, KCC has given the property-owners 14 days to pay the arrears, notices issued recently have shown.

By Florence Nakaayi

KAMPALA City Council (KCC) is demanding sh4b from property tax defaulters. As a result, KCC has given the property-owners 14 days to pay the arrears, notices issued recently have shown.

The new rules on property charges require all owners of commercial buildings to pay tax.

Parliament buildings, Nakivubo Stadium, Uganda Museum, Uganda Land Commission, Ministry of Works and the Uganda Revenue Authority were among the defaulters, according to the list, which was published in The New Vision,/i>. Some of the individuals included businessmen, Sudhir Ruparelia and Hassan Basajjabalaba.

The notices, which were signed by the senior principal assistant town clerk of the Central Division, Godfrey Kisekka, said KCC would sue the defaulters who would not have complied within the 14 days.

Kisekka said the Local Government Act empowers KCC to attach property of the defaulters to recover its money. He said the defaulters got numerous reminders, but they ignored them.

“If, after service of the demand notice, the amount is not paid within two months, the local government may apply to the magistrate for a summary warrant to recover the amount from the person liable,” Kisekka wrote in the notice.

The list also included government buildings under the ownership of Uganda Land Commission, which had the most outstanding arrears of close to sh900m. These buildings are occupied by the finance, health, public service and foreign affairs ministries.

The Uganda Railways Corporation, President’s Office, Police, Ministry of Education, Uganda Posts and Telecommunications, National Water and Sewerage Corporation, National Environment Management Authority, Uganda Management Institute, Uganda Telecommunication, Farmers’ House and the Uganda Electricity Distribution Company are also defaulters.

Others are Kabojja Junior School, Kithende College, Homisdallen Primary School off Mawanda Road, Central Police Station, Law Development Centre, Milton Obote Foundation and Stanbic Bank.

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