Kampala Capital City Authority (KCCA) has over the years got most of its income from property rates of different structures around the city.
Even after knowing this, many government institutions have failed to comply with this making government the biggest defaulter of the authority.
According to a trusted source, Makerere University has been among these institutions and owes the authority over 3.1 billion for past 3 years.
The KCCA officials who are left with no option of retrieving the money yesterday ran to Keith Muhakanizi, Secretary to the Treasury, and demanded that he chops the Authority’s money directly from the institutions’ budgetary allocations.
“We have written to the Permanent Secretary of the Ministry of Finance to deduct the property taxes at source before all institutions not complying with the tax receive their next budget allocations.” Sam Serunkuma, the Director Revenue Collection at KCCA confirmed yesterday while addressing the media.
Apart from Makerere, there are other government institutions which have failed to pay the taxes including Uganda Prisons with an outstanding debt of 368 million Shillings, Ministry of Heath with 309 million Shillings, Ministry of Water with 254 million Shillings and Ministry of Works and Transport with 231 million Shillings indebt.
Others debtors include Uganda Police Force, Uganda Railways Cooperation, and Uganda Revenue Authority.
Makerere University hasn’t yet come out to talk about this issue and we will keep you updated incase of any comments from the university vice chancellor or any other representative from the institution.
