Kampala launches new local tax system

Kampala City Council has introduced a new computerised tax system that will monitor and identify new tax opportunities in the city. The global tax information system will require all the five city Divisions to register their businesses at the district so as to determine the number of taxable businesses, identify new revenue opportunities and identify tax defaulters. The innovation, according to the KCC Principal Finance Officer, Mr Patrick Kazoora, will fetch at least Shs71 billion ($35m) from the local revenue base, indicating an increment of Shs40 billion ($20m). In the 2008/9 financial year, KCC failed to hit the anticipated revenue projection registering a deficit of about Shs9 billion ($4.5m) due to alleged political interference.

Kampala Town Clerk, Ruth Kijjambu said KCC was lacking a reliable data base to closely monitor divisions’ revenue performance. “We expect to implement this system in the next financial year after acquiring new computer soft-ware. We shall also conduct a tax education workshop for the business community,” Ms Kijjambu said.

via Robert Mwanje at allAfrica.com, 17 Feb 2010