City landlords want tax holidays to waive rent

Rajiv Ruparelia, Managing Director Crane Management Services that owns several shopping malls and arcades said the government should intervene by urging Uganda Revenue Authority and utility service providers to give landlords a tax holiday to enable them to pass on the benefits to tenants.

Ruparelia was speaking at the issuance of Standard Operating Procedures (SoPs) by Crane Management Services to all tenants occupying their buildings around Kampala.

"COVID-19 is not going to disappear soon. So the question is how do we operate within its framework? The measures we have put in place to fight the pandemic are quite simple. We have already ordered many handwashing stations that will be placed at every entrance of the building. These handwash basins are not going to be operated with your hands but a foot pump. So you do not have contact with the opening and closing of the water. There will be automatic sprays that you put your hands under and the soap will come. So you will be able to ensure that very bacteria on your hands is neutralised," Ruparelia said.

"We will also ensure that we do not open all the entrances and exits to our buildings. What we will do is to control the entrance and exit points. We will set up checkpoints where you wash your hands, where temperature checks are done and we will deploy more security personnel to ensure that everybody is checked before entering or exiting the building. We will ensure that everybody wears a face mask or covering and everyone observes social distance]ing rules."

Ruparelia said they will work with their tenants to ensure that this is all observed and followed to detail because it is in the interest of landlords and tenants that the buildings and businesses can start operating again.

"They can start supporting their families again because they have been closed for the last four months and they have no other source of income, which is going to create a bigger threat to us and the economy at large" Ruparelia said.

On rent arrears, Ruparelia said, "We are one big family. A building is useless without tenants. However, tenants cannot operate without a building. So we are like a marriage and this marriage is very intimate. Unfortunately, the government has not given any waivers to this industry. If you look at it, URA has only deferred their payments. They have not said that this year, they are going to give special considerations and write off taxes for companies. And if you look at NSSF, they have not given any conditions where companies can reduce the liabilities to pay NSSF. You see, when the tenant pays the landlord, the landlord takes the money and pays the banks."