Today DP Bloc outed the People’s position on property tax, here is the statement.
DP OPPOSES ERIAS LUKWAGO TAX IN KAMPALA. ISSUES 30 DAYS ULTIMATUM TO SCRAP THE TAX
The new property tax in Kampala is an Erias Lukwago tax because the act enacted by Parliament gives Lukwago and KCCA the discretion to levy or not and to determine the rate from the range of 0 to 12 %.
We are appalled that Mr Lukwago chose a 6 % rate, well knowing the economic meltdown, unemployment and the burden this imposes on rent increase and the cost of living in Kampala. This tax will not be paid by the land Lord but will be passed on and paid by the tenants.
The DP BLOC’s opposition to the Lukwago tax is based on four grounds;
1. Failure to Sensitise the People as required by the same act. World bank extended a grant of 20 million US dollar to enable KCCA conduct a thorough sensitisation about the tax before its launched. KCCA did not conduct any sensitisation.
2. Shoddy process of the Valuation and assessment.
The said Grant was also to enable KCCA recruit professional personnel to do a thorough assessment and Valuation. Valuation is a result of extraction of actual annual rent-able incomes. KCCA failed to conduct this process.
3. The unfair rate of 6%.
The act gives KCCA power to determine the tax rate between 0 to 12 %. This tax is eventually passed on to the tenant. The rate of 6% is an over charge considering the many tax obligation of our wanainchi.
4. The levy on Owner / occupier properties
The Levy is taxable on rent-able income, however the assessment lists do not take this in consideration.
The DP BLOCK finds the Lukwago tax detestable, anti people, null and void and should be rejected. We demand that;
1. Mr. Lukwago should rescind his property tax with immediate effect.
2. A fresh exercise to assess, value and determine the fair tax be undertaken after effective sensitisation and engagement of all stakeholders.
3. Kampala be zoned and rates levied according to capacity and levels of service delivery.
Zone A – Central Business district, averagely survived be rated at 2.5%
Zone B – Medium Serviced Zone rated at 1%
Zone C – Low/No Serviced Zones rated at 0%
We are now issuing a 30 day ultimatum within which Mr Lukwago must act, short of which, we shall invoke the power of the People in Kampala to remedy this tax crisis.
DP Bloc Presidium
Dated 25th June, 2019
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