By J. Waiswa
Kampala
The 67-year-old man residing in Kisasi-Kyanja, Nakawa division, is currently bedridden due to a stroke.
He is deeply concerned about the possibility of losing his property due to what he perceives as unjust property rates imposed by the Kampala Capital City Authorities (KCCA), Uganda’s capital.
In light of his condition, he humbly appeals to the government for an exemption.
The man owns a property consisting of six rooms, from which he earns a monthly income of sh200,000. This income is crucial for covering his medical expenses, but he now finds himself in a complicated situation as he owes KCCA Uganda Shillings 3,000,000.
Expressing his worries, he states: “Given my condition, I am uncertain if I will be able to settle these outstanding payments. My priority is to cover my medical bills.”
To protect his identity, he chooses to use a pseudonym, Ssalongo.
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He further explains that he was asked to pay three million as property rates for his rentals, which he believes to be highly unfair.
Additionally, he expresses confusion regarding the origin of his arrears, as he was not provided with a clear explanation.
He is not the only one facing this predicament; the entire community in his area is also voicing their concerns.
The communities have expressed their desire for increased awareness and a reevaluation of the rates, while some have requested to be exempted for various reasons.
Many argue that the actions of the city authorities amount to double taxation, as they already pay taxes to the Uganda Revenue Authority (URA) through rental incomes.
During the inauguration of the Valuation Court in Kyanja-Kisasi, the city’s Lord Mayor Erias Lukwago emphasized the need for ongoing public education regarding the court’s operations.
He clarified that the court acts independently to mediate between the KCCA and property owners.
Lukwago also acknowledged that there is still a lack of understanding among the communities about the court.
He assured residents, particularly the elderly, sick, and disabled individuals, that KCCA is taking their needs into consideration.
Furthermore, he pointed out that the imposition of Property and Rental income taxes may result in double taxation, which goes against the principles of taxation.
Although the Local Government Ratings Act allows for up to 12% taxation, he says the Authority Council has decided to implement a tiered system with charges of 6%, 4%, and 1% for different income brackets, aiming to promote social justice.
He advised the public to seek relief under Regulation-6 of the Ratings Act, which allows for the waiver or reduction of taxes based on factors such as old age, incapacity, chronic illness, or damage to rental properties caused by natural disasters.
The Chairperson of the Valuation Court, Counsel Samuel Muyizzi, mentioned that the Court is facing challenges in facilitating resolutions for various issues.
The Court’s field session was attended by the City Authorities senior officials, property owners, and other local leaders from various divisions.
The sessions will last for six months.
The local leaders in Kyanja requested KCCA and URA to collaborate in order to avoid double taxation.
But response, Lukwago stated that plans are being made to harmonize the taxes, as property owners currently pay both URA rental tax charges and property rates
KCCA provides various services to all residents of Kampala, including road construction, street lighting, garbage collection, and environmental conservation.
Lukwago explained that the services may not directly benefit individuals, but are essential for the overall development of the city, the reason why property rate is required to fund these services.
Property rate is a tax levied on all immovable properties or buildings, such as schools, rented houses, factories, and hotels, that are used for business purposes, even if they are owner-occupied.
City properties are assessed every five years to determine the property rate.