Kampala Capital City Authority (KCCA) wants the Bonifide Occupant Law amended to allow owners of posh houses in Kampala and its suburbs start paying taxes.
KCCA says bonifide occupants being exempted from paying taxes has cost government a lot of revenue.
Jenifer Musisi, the KCCA Executive Director made the revelation on Tuesday while appearing before the Parliament Committee of Statutory Authorities and State Enterprises (COSASE).
KCCA officials were summoned by Parliament to answer audit queries raised in the 2013/2014 Audit report.
“…We are seeking an amendment to that law (Bonafide Occupant. The reason we are seeking an amendment is that we feel that all citizens should contribute to the development of the city and the services of the city,” Musisi said, responding to queries raised in the Audit report, where KCCA was blamed for sleeping on the job as the arrears accumulated.
According to the Auditor General’s report, KCCA had failed to collect Shs49bn and 10.9bn in Property Rate and Ground Rate respectively.
“We have people in Bwaise and other low income areas. They are paying their property rates. We have very many citizens in affluent areas of the city. They aren’t making any contribution to the transformation or improvement of the city. The demands of roads and services in certain areas are more than other areas,” she added.
Musisi said residents in Muyenga, Kololo, Munyonyo, Mutungo and Mbuya don’t make meaningful contributions yet they are the most demanding in terms of security lights and tarmacked roads.
“So we want Government to consider reviewing that law and make it progressive so that everybody makes a percentage contribution, perhaps a percentage on a property depending on where it is located and its worth,” Musisi roared.
She said richest residents in the city don’t pay much yet low income earners pay for the services they consume.
However, KCCA proposal was met with rejection from MPs, with Abdu Katuntu, the COSASE Chairman and Bugweri County MP noting that exemption on the bonafide occupant law only applies to people who aren’t making money on the property.
