The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Kampala Capital City Authority- KCCA wants the current valuation exercise concluded by June 30, to avoid interfering with the tax collection process for the new financial year that starts on Monday, July 1.
KCCA says that any disruption to the conclusion of the exercise before July 1, 2019, has disastrous implications to the budget of the financial year 2019/20 and related projected activities. The city authorities expect to raise up to 45 billion Shillings in property rates, next financial year. The estimate represents about 50 per cent of the total budgeted non-tax revenue for the year.
The valuation process started in 2016 with the Central division of Kampala. It was later extended to the other divisions of Nakawa, Lubaga, Makindye and Kawempe. The previous valuation exercise was conducted in 2005.
According to the Local Government Act, the exercise is supposed to be conducted every five years. However, KCCA could not conduct the exercise in 2010 due to lack of funding until the World Bank offered resources through the Kampala Institutional and Infrastructure Development Projects-KIIDP II.
“If rent was one million in 2005 and 6 percent of the rateable value will be about 44,000 Shillings. In 2019, the rent at the same property could be at three million bringing 6 percent of rateable value to around 130,000 Shillings” Gonzaga said in a phone interview with the URN.
KCCA charges 6 per cent of the rateable value, which stands at 74 per cent of the income generated from a property.
However, over 800 property owners filed complaints before the KCCA valuation court chaired by Wandera Ogalo, in line with a provision of the law, for a 30-day period within which property owners can file complaints arising from the valuation exercise.
The Court started hearing cases on June 10, 2019, and by June 14, about 540 cases had been heard awaiting a ruling. KCCA head of Valuation team Aloysius Gonzaga says that if the process is not concluded, KCCA would have to continue working with the previous rates.
The KCCA council chaired by the Lord Mayor Erias Lukwago asked the revenue office not to implement the new rates until the valuation court decides on all cases raised before it.
But the KCCA technical wing argues that The Valuation exercise was done in strict conformity with the relevant laws and that the was sensitization of the residents and the leaders and the rates set were as provided for in the law.
“The KIIDP II project under which the current property revaluation is being conducted is scheduled to end in December this year and the expectation of the World Bank is that the Main Valuation will have been concluded by 30th June 2019” reads part of the statement.
*****
URN
