Kitgum municipality authorities suspend traders' tax increase
The traders claim that some taxes had been raised by more than 200 percent. For instance, fees that were previously sh150,000 were increased to sh300,000, while others doubled from sh200,000 to sh400,000.
Prof. Ogenga Otunnu addresses traders in Kitgum during the meeting in which the suspension of the fees was announced to allow time for consultations and sensitisation before any future implementation. (Photo by Christopher Nyeko)
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Authorities in Kitgum Municipality have temporarily suspended a controversial tax increase following protests by traders.
The traders claim that some taxes had been raised by more than 200 percent. For instance, fees that were previously sh150,000 were increased to sh300,000, while others doubled from sh200,000 to sh400,000.
They also accused tax collectors of harassment and intimidation, alleging that they were being forced to make immediate payments upon issuance of payment reference numbers.
During a recent meeting between municipal authorities and traders, it was agreed that the new tax rates would be suspended for one year to allow for further dialogue.
The meeting was chaired by Professor Ogenga Otunnu from the Office of Operation Wealth Creation (OWC), who stated that the government would investigate officials responsible for implementing the tax changes without following proper procedures.
Professor Otunnu emphasised that while traders are willing to pay taxes, the rates must remain fair and not overly burdensome.
Meanwhile, Kitgum Municipality Town Clerk, Joseph Bagonza, acknowledged that the council did not follow the required legal procedures and confirmed that the municipality will revert to the previous tax rates.