Home News Government Moves to Revise Property Tax to Relieve Financially Strained Citizens

Government Moves to Revise Property Tax to Relieve Financially Strained Citizens

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The government plans to revise property tax rates to alleviate the financial burden on its citizens, making them more affordable and manageable for property owners nationwide.

During the second Uganda Housing Symposium in Kampala, Minister of Lands, Housing and Urban Development Judith Nabakooba, highlighted the necessity of revising these rates, as they are currently considered unfriendly and unaffordable for all Ugandans.

Nabakooba revealed that the country is currently collecting less than 40 percent of the property tax owed due to property owners hiding or not declaring themselves due to high rates.

The ministry collaboratively with the Uganda Revenue Authority (URA), Ministry of Finance, and Kampala Capital City Authority (KCCA) intends to have these rates revised to make them more favorable for taxpayers.

According to the Local Government Act, local governments can charge property taxes ranging from 2,000 shillings to a maximum of 12% of the taxable value of the property, which is 74% of the property’s revenue generated. In 2020, KCCA adjusted these rates in Kampala, but some property owners still find them high.

Nabakooba believes it is essential to engage stakeholders across the country to address payment challenges, even for those using government-owned houses or institutions.

“There is a need to engage stakeholders across the country to resolve challenges with payment even to those residing in government institutions owned houses.”

Anthony Okoth, the National Director of Habitat for Humanity Kenya, called on Uganda to adopt policies for affordable housing to bridge the housing gap and reduce youth unemployment, suggesting the involvement of the private sector to address housing deficits.

Robert Otim, the Executive Director of Habitat for Humanity- Uganda expressed the need for more concerted efforts to alleviate the housing deficit in the country, while keeping environment protection in mind, to make the sector more sustainable.

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