KCC, traders row over taxes
Mar 12, 2010
KAMPALA City Traders Association (KACITA) has asked traders not to pay for trading licences until Kampala City Council (KCC) reviews the new disputed charges.
By Florence Nakaayi
KAMPALA City Traders Association (KACITA) has asked traders not to pay for trading licences until Kampala City Council (KCC) reviews the new disputed charges.
Issa Ssekitto, the KACITA spokesperson, told reporters this week that following the traders petition to Parliament last year, KCC was supposed to revert to the old rates but had ignored the directive.
KACITA’s reaction follows a KCC trading licence assessment on businesses using the new rates.
“We shall not allow this. Much as we are not against paying licence fees, we should pay an appropriate amount, which will not let our businesses collapse,†Ssekikto said.
Last May, the traders’ umbrella agency, petitioned Parliament seeking a probe into the legality of the trade licence fees levied by the KCC prior to the enactment of the Trade Licensing Amendment Act.
In its report, the parliamentary committee on tourism, trade and industry recommended that the implementation of the Trade Licensing Act be stayed until illegalities had been straightened out.
The Trade Licencing Act requires traders to pay licences of sh100,000 and below, but KCC had hiked fees up to sh950,000, which traders contested.
It also pushed traders to file a court case against KCC, claiming over sh3.5b in illegal licence fees for the past 10 years. The case was backed up by the MPs, who insisted that the city authority’s act was illegal.
The committee observed that since 2000, KCC had increased the licence fees of the traders without any corresponding statutory instrument.
This tantamounted to collecting money illegally, the legislators, argued.
“This has been broad-day robbery and KCC should be accountable because of harassing the business community,†said Erias Lukwago, the Kampala Central MP, who tabled the petition on behalf of the traders in November.
He noted that on many occasions, companies contracted to collect revenue do not remit the funds to the city authority account.
But KCC attributed the fees hike to the need to increase the cash inflow in the city given the increase in population and inflation.
“It is not fair for traders to be cheated for 10 years, KACITA should seek redress in court,†noted MP Beatrice Anywar.
The Trade Act requires wholesale traders to pay from sh60,000 to sh100,000 and retail traders sh20,000 to sh35,000 but the fees were increased to a range of sh360,000 to sh950,000 by KCC.
KACITA spokesman Issa Ssekito commended the MPs, saying they would pursue legal redress.
KAMPALA City Traders Association (KACITA) has asked traders not to pay for trading licences until Kampala City Council (KCC) reviews the new disputed charges.
Issa Ssekitto, the KACITA spokesperson, told reporters this week that following the traders petition to Parliament last year, KCC was supposed to revert to the old rates but had ignored the directive.
KACITA’s reaction follows a KCC trading licence assessment on businesses using the new rates.
“We shall not allow this. Much as we are not against paying licence fees, we should pay an appropriate amount, which will not let our businesses collapse,†Ssekikto said.
Last May, the traders’ umbrella agency, petitioned Parliament seeking a probe into the legality of the trade licence fees levied by the KCC prior to the enactment of the Trade Licensing Amendment Act.
In its report, the parliamentary committee on tourism, trade and industry recommended that the implementation of the Trade Licensing Act be stayed until illegalities had been straightened out.
The Trade Licencing Act requires traders to pay licences of sh100,000 and below, but KCC had hiked fees up to sh950,000, which traders contested.
It also pushed traders to file a court case against KCC, claiming over sh3.5b in illegal licence fees for the past 10 years. The case was backed up by the MPs, who insisted that the city authority’s act was illegal.
The committee observed that since 2000, KCC had increased the licence fees of the traders without any corresponding statutory instrument.
This tantamounted to collecting money illegally, the legislators, argued.
“This has been broad-day robbery and KCC should be accountable because of harassing the business community,†said Erias Lukwago, the Kampala Central MP, who tabled the petition on behalf of the traders in November.
He noted that on many occasions, companies contracted to collect revenue do not remit the funds to the city authority account.
But KCC attributed the fees hike to the need to increase the cash inflow in the city given the increase in population and inflation.
“It is not fair for traders to be cheated for 10 years, KACITA should seek redress in court,†noted MP Beatrice Anywar.
The Trade Act requires wholesale traders to pay from sh60,000 to sh100,000 and retail traders sh20,000 to sh35,000 but the fees were increased to a range of sh360,000 to sh950,000 by KCC.
KACITA spokesman Issa Ssekito commended the MPs, saying they would pursue legal redress.