Arua, Uganda | THE INDEPENDENT | Arua district has recorded a significant reduction in local revenue collections, one month to the end of the financial year. The district had planned to collect 426 Million Shillings but they managed to collect only 185 Million Shillings.
Solomon Anguzu, the Secretary of Finance and Administration attributed the reduction to the negative attitude of taxpayers and poor remittance by the lower local government units.
Anguzu said that efforts are underway to ensure that revenue collection is enhanced through validation of taxpayers sensitization and among others.
Alfred Okuonzi, the LCV chairperson attributed low collections of local revenue to the reduction of revenue sources. He says that some areas that had sources of revenue were annexed to the city. According to Okuonzi, the reduction has affected the operation of the district, especially on activities that are funded using local revenue.
When Arua gained city status in July 2020, the district lost seven sub-counties after they were annexed to the city. Currently, some of the major sources of revenue for the district include the weekly markets of Kampala in Logiri sub-county, Nyio, and Ejupala markets in Vurra sub-county and registration of birth and death certificates among others.
Jude Mark Bukenya, the Chief Administrative Officer explains that the district didn’t collect sufficient funds from fines and penalties, rents, and property-related income. He however says there is an urgent need for the district finance committee to address the local revenue gaps if planned activities for the year were not implemented.
Luiji Candini, the Arivu sub-county councilor told URN in an interview that the council’s operations have been hit hard because the councilors are not receiving their emoluments.
Section 80(1) of the Local Government Act empowers local governments to levy taxes including fines rates, rent royalties, stamp duties, and registration and licensing fees among others.