Lukwago tasks govt on property tax
Kampala Lord Mayor Mr Erias Lukwago has urged Parliament to make amendments to laws that govern property tax collection.
Speaking to the residents of Kyanja, a Kampala surbub who attended the Kampala Capital City Authority (KCCA) Valuation Court sitting, Lukwago acknowledged that property rate tax is a double taxation, explaining thaat the landlords pay income rate tax to Uganda Revenue Authority (URA).
His remarks followed an outcry from the landlords over the high taxes charged by the Authority on rental properties while others said they are charged tax on residential buildings which is contrary to the law.
In response, Lukwago noted that KCCA has no powers to scrap property rate tax because the was passed in parliament, urging them to continue using the tax system which was passed in the City Council as parliament considers amendments to the law.
“We recognise it is a very unaffair tax because we already have another tax under the Income Tax Act (Rental Tax) which is being imposed by URA as a national tax,” Lukwago said.
Under the banded tax system, the rich pay property rate tax of 6% of the rental value while the poor pay 1%.
