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Muhakanizi, Kayihura On The Spot Over Tax Evasion

The Inspector General of Police, Kale Kayihura and the Finance Ministry Permanent Secretary, Keith Muhakanizi, are on the spot for evading payment of income and local service taxes for their ranches in Lyantonde district.

The issue came to light on Friday morning during an interface between the Local Governments Accounts Committee chaired by Reagan Okumu, the Aswa County MP and Lyantonde District officials.

During the meeting, it was noted that although Lyantonde District projected to collect Shs105.7m in local revenue in the 2015/2016 financial year, only Shs80m. In the 2014/2015 financial year, Lyantonde expected to collect Shs 115.6m but only realized Shs90m. The officials noted that the failure to generate the projected local revenue hampers service delivery to residents.

IGP Kale Kayihura

Okumu tasked Alice Asiimwe, the Lyantonde Chief Administrative Officer and the Chief Finance Officer Moses Mugabi Ndawula to explain why their local revenue, a key sources of funding for local governments continue dwindling each financial year. He also asked the officials to explain how far they have gone with collecting local service tax and income tax from powerful politicians who own ranches and big farms in the district.

The MPs noted that they recommended last year that people with big ranches in the district such as Kale Kayihura, Keith Muhakanizi and Kabula County MP, James Kakooza should pay the district local service and income taxes. In this response, Moses Mugabi, the Lyantonde Chief Finance Officer noted that they have done nothing, since the officials had denied them access to their ranches.

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