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KCC to Retain New Trade Licence Fees Despite Resistance

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Kampala City Council is determined to enforce the new trading license fees despite resistance from the traders.
The new trading licensing fees were approved by the Ministry of Tourism, Trade and Industry in January this year
License fees for supermarkets more than tripled from 290,000 shillings to two million shillings. Power generation and distribution companies and mobile network service providers will have to part with four million shillings annually. Licensing for private hospitals and schools increased from 200,000 to 500,000 shillings.
Surveyors, engineers and property valuers are required to pay up to one million shillings from 150,000 shillings annually. The licensing fees for hotels and lodges have also more than doubled.
The increase in license fees was prompted by a need to raise revenue collection in Kampala city.
Last month, following numerous complaints by traders, Kampala Mayor Nasser Ssebagala announced the suspension of the new licensing fees. He said the fee structure needed to be reviewed by KCC.
However Simon Muhumuza the KCC spokesperson, says the Mayor's pronouncement cannot revoke a statutory instrument that increased the license fees. He says that until the instrument is revoked by the council, the new fees will remain the same and anyone operating a business in Kampala will be required by law to pay up.
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The KCC Local Revenue Enhancement Plan 2007-2010 shows that the council raised only 3.9 billion of the projected revenue of 4.7 billion shillings last year. It is hoped that the new fees will double the revenue to about 10 billion shillings.

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