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Good services possible only through tax compliance - Fort Portal Mayor

Fort Portal City is in preparations to enforce property tax as a means to address revenue shortfalls
Fort Portal City Mayor Edson Asaba Ruyonga
Fort Portal City Mayor Edson Asaba Ruyonga

Ruyonga expressed concern over the prevalent perception of taxes as a burden, noting that the media often portrays taxes negatively without adequately explaining their role in funding essential services.

The mayor's remarks come as Fort Portal city prepares to enforce property tax as a means to address revenue shortfalls and boost funding for public services.

"The media should refrain from depicting taxes negatively. Instead, they should provide a comprehensive breakdown and compare the tax collection against the demands of the population," Ruyonga remarked.

"You will find that people will begin to have a more positive attitude towards taxes and acknowledge our efforts in utilizing the limited resources to provide these services."

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According to the mayor, property tax represents an opportunity for the city to secure additional funding for even better services.

He advocated for greater autonomy for city authorities in allocating taxes, arguing that they possess a better understanding of the local populace's service needs compared to the central government.

"We are aware of the key issues that need attention, such as waste collection and water supply. We are more attuned to the concerns of our citizens. However, a significant portion of the revenue collected here first goes to Kampala before being returned to us. We should not have to rely on Kampala to allocate the funds generated from our taxes for our services," he stated.

To foster this understanding, Hoima City recently engaged property owners to gather their input on how revenue from property rates should be utilized.

The "Services and Fair Tax for Property Owners" campaign, organized by RippleNami Uganda with support from USAID's Domestic Revenue Mobilization for Development initiative, sought property owners' opinions through civic engagement events, focus groups, and surveys.

Regarding property tax enforcement progress in the city, Mr. Rugumayo explained that they are in the process of contracting a third party who will be tasked with sensitizing property owners.

"Information is gradually reaching taxpayers, but our primary focus will be on private contractors who will not only collect taxes but also gather data and raise awareness among the public. This will be part of our Memorandum of Understanding," he explained.

He expressed confidence in the development, citing a "reasonable" tax rate of 5 percent that the council had chosen.

In a 2020 Auditor General's report, it was highlighted that the expansion of cities, including infrastructure development and public services, has been hampered by insufficient funding. The report noted that all 10 cities had failed to implement approved city structures due to financial constraints.

Therefore, property taxes levied on property owners aim to enhance the financial capacity of local government authorities to fund these critical purposes.

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