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Sensitization, Enforcement Improves Local Revenue Collection

According to the mid financial year assessment report on local revenue collection carried out by the Local Government Ministry, Ntoroko district has so far collected Shillings 480 million of the estimated Shillings 530 million while Bundibugyo district has collected Shillings 500 million of the estimated Shillings 650 million.

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Ntoroko and Bundibugyo districts have registered an increase in their local revenue collection. Unlike other local governments, which face an uphill task to raise adequate local revenue, the two districts have registered a 70 percent increase in local revenue collection, which has improved service delivery. 

 

 

According to the mid financial year assessment report on local revenue collection carried out by the Local Government Ministry, Ntoroko district has so far collected Shillings 480 million of the estimated Shillings 530 million while Bundibugyo district has collected Shillings 500 million of the estimated Shillings 650 million. 

Revenue collection in Kabarole, Kyenjojo, Kyegegwa and Kamwenge districts was at 30 percent. Enock Asiimwe, the Deputy Chief Administrative Officer Bundibugyo, attributes the success in revenue collection to the strict law enforcement.

 

He explains that individuals who fail to pay local revenue have had their businesses closed and are reopened after remitting the revenue. He also explains that the district is also aware of all their sources of income, because of the introduction of an assets register. 

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The Local Government Act requires all administrative units to establish an asset's register, a thing most districts had neglected. Asiimwe says they have managed to construct water sources, renovate five health center IIIs and opened access roads. 

In Ntoroko, Faith Mujungu, the acting Chief Administrative Officer says local revenue collection has been easy due to sensitization of the public. She explains that every day, sub county chiefs sensitize the community to boost the level of local revenue collection.  

Mujungu says that some of the local revenue sources include advertisement fees, ground rent and market dues. Mujungu also says that transparency in the payment method has also increased collection.

 

She explains that the tax payers are now required to pay directly in the bank unlike in the past when they paid the revenue to sub county and parish chiefs, who swindled the funds. 

The 2015/2016 Auditor General's report raised queries on why the local government had failed to realize their targeted local revenue budget estimates.

The problem of low revenue in most local governments increased following the abolishment graduated tax in 2005, which used to provide a major source of local revenue to the institutions.

Last year, while appearing before Parliament's Local Government's Accounts Committee, district officials in the Rwenzori region blamed the poor local revenue collection on politics and insecurity.

 

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