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Kayihura, Muhakanizi on the Spot for Evading Local Service Tax

n this response, Moses Mugabi, the Lyantonde Chief Finance Officer noted that they have done nothing, since the officials had denied them access to their ranches. Mugabi also noted that some of the powerful individuals in government he didnt disclose also threatened him when he brought up the matter before the committee last year.
Lyantonde officials before Local Govt accounts committee

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The Inspector General of Police, Kale Kayihura and the Finance Ministry Permanent Secretary, Keith Muhakanizi, are on the spot for evading payment of income and local service taxes for their ranches in Lyantonde district. The issue came to light this morning during an interface between the Local Governments Accounts Committee chaired by Reagan Okumu, the Aswa County MP and Lyantonde District officials.

During the meeting, it was noted that although Lyantonde District projected to collect Shillings 105.7 million in local revenue in the 2015/2016 financial year, only Shillings 80million. In the 2014/2015 financial year, Lyantonde expected to collect Shillings 115.6million but only realized Shillings 90 million. The officials noted that the failure to generate the projected local revenue hampers service delivery to residents.

Okumu tasked Alice Asiimwe, the Lyantonde Chief Administrative Officer and the Chief Finance Officer Moses Mugabi Ndawula to explain why their local revenue, a key sources of funding for local governments continue dwindling each financial year.  He also asked the officials to explain how far they have gone with collecting local service tax and income tax from powerful politicians who own ranches and big farms in the district.

The MPs noted that they recommended last years that people with big ranches in the district such as Kale Kayihura, Keith Muhakanizi and Kabula County MP, James Kakooza should pay the district local service and income taxes. In this response, Moses Mugabi, the Lyantonde Chief Finance Officer noted that they have done nothing, since the officials had denied them access to their ranches. 

Mugabi also noted that some of the powerful individuals in government he didn't disclose also threatened him when he brought up the matter before the committee last year. He however, noted that some cattle owners paid Shillings 7million in the last financial year. 

On average is cattle ranch in the district can contribute Shillings 300,000 each financial year. Okumu promised to summon and embarrass Kayihura, Muhakanizi and Kakooza should they continue evading the payment of local service and income taxes.

// Cue in: “They should be…

Cue out: … not invoicing them."//

General Edward Kale Kayihura, the Inspector General of Police and Keith Muhakanizi, the Finance Ministry, Permanent Secretary have not yet commented as they could neither pick nor return our calls. Kakooza declined to comment on the matter, saying he was locked up in a meeting.

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