According to the performance report by the Directorate of Tax Collection, the Authority collected Shillings 3.2 billion compared to Shillings19.3 billion collected in the same period in the 2018/2019 financial year.
KCCA Executive Director Dorothy Kisaka addressing her first press briefing after taking over office
Tax Collection in
Kampala Capital City Authority-KCCA reduced by 83% in the last quarter of the 2019/2020
financial year, which covers April, May and June.
According to the performance report by the Directorate of Tax Collection, the
Authority collected Shillings 3.2 billion compared to Shillings19.3 billion
collected in the same period in the 2018/2019 financial year.
This means the
Authority failed to achieve its target of collecting Shillings 22.2 billion set
for the last quarter of the 2019/2020 financial year and Shillings 100 billion
for the entire financial year. Ultimately, the
authority collected Shillings 74.9 by March in the 2019/2020 financial
KCCA attributes the decline to the lockdown announced by government to
contain the spread of the Corona Virus disease. Due to COVID 19, KCCA
says no sensitization was conducted within the period except for bulk messages
sent to 153,140 people reminding them to clear their taxes amounting to
Shillings 35.9 billion. Much of this wasn’t realized.
Also, that no physical
demand notices could be served to clients and yet Local revenue collections
depend on field based interactions between revenue officers and clients. KCCA collects revenue
from business license fees, Property rates, ground rent, street parking fees,
building permit fees, local hotel tax, land fees, local service tax,
advertising fees and Markets and rent fees. Of these, building permit fees
yielded Shillings 478.8 million compared to the target of Shillings 622.7
This was the best
performing source since construction activities were not halted during
lockdown. However, the revenue is still low compared to the one billion
Shillings collected during the same period in the financial year of 2018/2019 Business License fees came second with a revenue turn out of Shillings 466.8
million against the target of Shillings 2.7 billion. This was also low compared
to Shillings 3.9 billion collected in the same period in the 2018/2019
Property tax, which is
KCCA's largest single source of revenue attracting over Shillings 32 billion
annually this time only fetched Shillings 1.4 billion in the three months. Although it still was
the largest revenue contributor, its performance was poor compared to their
target of Shillings 8.7 billion. Yet still, there is a decline looking at
Shillings 7.98 billion collected during the same period in the financial year
Advertising fees brought in the least revenue with Shillings 15.5 million
against the target of Shillings 848.2 million. Yet, in the last quarter of
2018/2019 financial year, KCCA collected Shillings 1.5 billion. The poor
performance of advertising fees is attributed to the April 23rd, 2020
court ruling, which outlawed all activities relating to outdoor advertising
Before the lockdown
was declared, KCCA was performing well in tax collection. In the third quarter
of 2019/2020 that ran from January to March, the Authority collected Shillings
28.85 billion against a target of Shillings 25 billion. The revenue was also
higher than the Shillings 27.5 billion collected in the same period during the
2018/2019 financial year. According to the report, some revenue sources
achieved beyond their target during the third quarter.
For instance, Business
license fees attracted Shillings 9.3 billion against the set target of
Shillings 9.2 billion, building license attracted Shillings 1.03 billion
against a target of Shillings 511 million, Property rate tax generated
Shillings 8.1 billion against the target of Shillings 5.4 billion while
advertising fees brought into KCCA revenue of Shillings 932 million against the
target of Shillings 871 million.
All revenue collected by KCCA is sent to the consolidated fund and later
allocated to KCCA for spending.