The Kampala Capital City Authority (KCCA) has clashed with the Solicitor General's office over the payment of property tax by educational institutions supported by government.
In September 2016, the Solicitor General gave an interpretation of the Local Governments Rating Act 2005, saying educational institutions that receive support from government are exempted from paying property rates.
However, Jennifer Musisi, the KCCA Executive Director disagrees with the Solicitor General's position on the matter, saying the educational institutions make huge sums of money in tuition.
The matter came up when Musisi led a team of KCCA officials to appear before the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) on Tuesday to respond to queries in the 2013/2014 financial year Auditor General's report.
The report notes that city revenue amounting to Shillings 63.2 billion remained uncollected with this figure rising to Shillings 77 billion in 2014/2015 financial year. Musisi called for an amendment to the law on property rates with regard to exempting properties in the city that are occupied by their owners.
She argued that the law should be reviewed so that residents in affluent areas pay for social services.
KCCA has repeatedly raised concern on the property rates laws since owners of residential houses evade payment by claiming they occupy the house yet they rent them out.
However, MPs took exception to the fact that government waived payment of property rate arrears in the 2015/2016 financial year by government institutions and yet the money is appropriated.
Abdu Katuntu, the COSASE Chairperson was particularly displeased with the revelation and demanded for a list of government institutions that has defaulted on payment.
