The new tax introduced by Kotido Municipal Council on produce sellers
has met stiff resistance.
The new tax came into place in June, following a council resolution on May
31st, 2019. The tax is levied on per bag of produce sold within or brought into
Each bag of produce is charged 2,000 shillings and it is currently being
enforced amid serious protests from the produce sellers who have called on the
Municipal Council to wave it off.
The produce dealers claim the tax is very high given higher costs
of running business in Kotido.
They also claim that the new denies them the right to a trading license, a
document legally binding their businesses.
Felix Arnold Adar, the chairperson Kotido Produce Dealers says the new tax is
unfair on them since they pay District Development Fund which is charged on
each bag from the districts they buy. He explains that the produce dealers, in
addition to daily market dues have to pay another fee if they sell the produce
in the open market within Kotido Municipality.
// cue in “This product we buy...
Cue out… injuries and unfairness.”//
Earlier, there were suggestions by the sellers that the new tax would replace
the Trading license, which had been suspended since January but the Town Clerk,
Sereverio Mukobi has underlined that licensing will be reinstated immediately.
He also revealed that market gate fees will remain in the municipality to raise
revenue for council.
The new development comes at a time when licensing to Produce dealers had been
suspended, awaiting plans to introduce a new tax to the business community.
//cue in “I want to emphasize that...
Cue out...paid by the seller”//
According to Auditor General’s Report for 2017/2018 Financial Year, Kotido
Municipality registered a shortfall of UGX. 131 million from approved local
revenue budget of 566.9 million shillings.
Under the law, Local Councils are empowered to levy and appropriate taxes as
additional responsibility on issuance of licenses. There are 34 registered
produce sellers in Kotido Municipality, according to their chairperson, Adar.