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Mbale City Council Closes Business Premises Over Taxes

James Kutosi, the Public Relations Officer Mbale City Council told our reporter that they decided to close the affected businesses for failure to comply with the council tax policies. He says that the businesses will only be allowed to reopen after clearing the taxes they owe the council.
04 May 2021 19:11
Mbale City Council Closes shops Over taxes; Curtesy Photo

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Several business premises in Mbale city are under lock and key for defaulting on taxes.  

A team of law enforcement officers from Mbale City and Industrial City Division authorities sealed off the business premises including shops, offices, hotels and restaurants among others on Tuesday for defaulting on ground rent, property rates and trading license fees.     

James Kutosi, the Public Relations Officer Mbale City Council told our reporter that they decided to close the affected businesses for failure to comply with the council tax policies. He says that the businesses will only be allowed to reopen after clearing the taxes they owe the council. 

   

Issac Wamanyala, the Mbale City Industrial Division accountant where most of the affected businesses are found, says the traders are supposed to pay for their annual trade licenses, operational permits, property rent and ground rent but many of them are adamant.  

Mbale City Council has been struggling to raise local revenue, which has affected service delivery. The Mbale City Interim Mayor, Mutwalib Zandya Mafabi, says they have only Shillings 700 million from their projected local revenue of Shillings 3billion. He blames the poor local revenue collection on the Covid-19 pandemic and defaulting by the traders.  

//Cue in: “I have tried to tell people… 

Cue out:…and more local revenue”// 

Some of the affected business people along Pallisa road who declined to identify themselves accused property owners of failure to pay the taxes. They claimed that they are likely to lose business because their shops are closed.

  However, some business people claimed they pay money to particular revenue collectors in the city council. According to the Property Tax Rates Act, 75 percent of the money collected is ploughed back to the community in terms of infrastructural development.

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