Minister Kasolo challenges local gov’ts on tax revenue

KYOTERA-The Minister of State for Microfinance, Haruna Kasolo Kyeyune has advised district local governments in the country to inspire citizens to engage in government programmes such as Emyooga and Parish Development Model [PDM], arguing that it would in the end help the authorities boost their tax revenue.

Emyooga was launched by President Yoweri Museveni in August 2019 as part of government’s strategies to transform 68 percent of Ugandan homesteads from subsistence to market-oriented production, while he launched the PDM in February this year to help an estimated 17.7 million people from 3.5mln households in subsistence farming move into the money economy through increased agricultural production and value addition.

While addressing district councilors at Kyotera district headquarters, Minister Kasolo said it is only through Emyooga and PDM that local governments can strategise to create more sources of local revenue. ”I have heard many local governments complaining of low tax revenues collections due to lack of enough tax sources,” he said.

The Minister explained that the many youths and women who are eligible to benefit from Emyooga and PDM can create income-generating ventures, which can in turn be the district’s source of local revenue.

He added: ”We urge you district leaders and councilors to continue mobilising people to form groups through SACCOs so that they create more income-generating projects which districts can tax and raise revenue.”

Kasolo urged the district leaders to sensitise the masses about the role of local revenue in service delivery. However, he warned district not to tax the locals exorbitantly, saying it could in the end frustrate the government programmes aimed at fighting poverty and creating wealth among the beneficiaries.

Kyotera district LCV chairman, Kintu Kisekulo said that much as the central government gave local governments a mandate to collect revenue collections from their own sources such as property tax, licenses, permits, fines and penalties, market dues, parking fees as per Schedule 2 of the Local Government Act 1997, his district is totally constrained with little revenue collection.

He said the performance of their elected leaders is frustrated by the limited funds to finance operations for service delivery to the intended beneficiaries of the decentraliSation system.

He said the revenue base of the district has reduced from the annual collections of Shs 897 million to only Shs 400mln collected in the financial year 2020-2021. He said his district is relying on central government disbursements mainly through conditional grants.

Tonny Kalyango, the district councilor representing Kirumba Subcounty, said they have limited sources of tax revenue such as trading licenses, permits, markets, sand mines, property tax, landing sites of Kasensero, Mutukula border post, kyotera town, and Kalisizo town council.

Kalyango said the district intends to start taxing traditional healers for their operations in the district.

According to Kyotera district community development officer, Francis Xavier Mbajjo, about 35 Emyooga SACCOs were formed in the district in 2019 and 2021, with 17 SACCOs in Kakuuto County receiving Shs 560mln while 18 SACCOs in Kyotera County got Shs 530mln.

He said 437 associations under these SACCOs created income-generating projects such as; tailoring, welding, retail shops, market stalls, boda-bodas, and carpentry among others from which he said the district can raise revenue.

He said over Shs 1.4 billion has been disbursed to members of 437 associations under the SACCOs and that over Shs 579mln loaned out has been recovered.

https://thecooperator.news/microfinance-minister-to-promote-emyooga-products/

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