Companies not liable to pay license fees to districts for masts– Court

Kampala, Uganda | THE INDEPENDENT | The High Court Civil Division has quashed an application in which Jinja Municipality sought to compel Eaton Towers Uganda which runs telecommunication masts to pay trading license fees worth more than Shillings 89 million. In his judgment delivered on Friday, Justice Musa Ssekaana declared that once a company pays the license fees set by the regulator, it is illegal to subject the same company to payment of trading license fees in any part of the country.

In its defense, Eaton Towers Uganda told court that it had paid licenses to the Central government through Uganda Communications Commission-UCC and subjecting them to any other payment would contravene the UCC Act. In 2019, Eaton Towers Uganda ran to court to challenge a demand note issued by Jinja Municipal Council to pay trade license fees for 27 telecom masts they acquired from Airtel.

The company argued that it was licensed, regulated and supervised by UCC under the UCC Act 2013 to operate and install telecom masts in Uganda. However, through its Commercial Officer, Rogers Kubwooyo, Jinja municipality argued that the municipality was mandated to regulate business activities within the area. Kubwooyo stated that Eaton Towers Uganda had established and maintained telecom masts within the precincts of Jinja Municipal Council for the last 12 years and accumulated trading fees arrears of Shillings 89.9 million.

The Municipality also noted that the company benefits from general services rendered by the Municipal Council and as such is required to contribute to local revenue in order to maintain service delivery. It was also the Municipality’s defense that Eaton Towers pays a general public infrastructure services license different in nature, character and purpose from trade license. However, Justice Ssekaana ruled that the company is not liable to pay trade license fees in respect of their telecommunication masts. He quashed the demand note and awarded Eaton Towers Uganda costs of the suit.

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