Gulu City grappling with low tax revenue
GULU-Gulu City has so far managed to collect only Shs 2.8 billion in local revenue out of an estimated Shs 5.9bln planned in the current financial year.
According to Godfrey Kiseka, the city town clerk, some of the town agents are not efficient in collecting tax revenue from local businesses.
While presenting a draft budget of Shs 35bln for the next financial year 2023/2024, last week, Caroline Rose Adong, the city councilor representing persons with disabilities [PWDs] in Gulu City Council, indicated the city has not performed well in raising revenue.
Adong, also the secretary of finance Gulu City Council said that the low local revenue collection could be due to forgery of receipts, illegal businesses operating in the city, and embezzlement of the funds by the town agents.
David Onencan, councilor representing Bar-dege Layibi South Division, claimed town agents and other staff seem to have found ways of bypassing the Integrated Local Revenue Administration System [IRAS], which is being used to collect tax money deposited to the consolidated fund.
Onencan, who wants the reports accompanied with receipts and bank statements on revenue collection believes some city officials could be embezzling the local tax revenue.
According to Onencan, there`s also a need for a deliberate effort to sensitise the masses on the importance of taxes in the country’s development.
“Many of the would-be taxpayers are evading paying because they don’t seem to understand why they should pay taxes. We need to raise awareness in the community,” Onencan said.
Kiseka, who is barely a month in office as the Gulu City town clerk concurred with Onencan, saying he has observed some laxity in tax revenue collection. He promised to introduce measures to boost collection of the tax revenue.
Officials added that only Shs 30.7bln of the Shs 45.9bln has been received under the central government transfer grant.
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