Gulu City is planning to collect Shs3.7 billion in property taxes in the fiscal year 2023/24. This is part of the city’s broader strategy to increase its revenue and work towards becoming financially self-sufficient, following the Domestic Revenue Mobilisation for Development plan.
Mr. George Kidega, the finance manager of Gulu City, stated in an interview that they intend to gather this revenue from approximately 3,200 properties that have a commercial aspect, as identified through recent mapping and valuation efforts. He expressed optimism about achieving the Shs3.7 billion target, provided there is full compliance. He emphasized that the mapping and valuation process, completed earlier in the year, has expanded the taxable properties list.
One of the main challenges faced by newly established cities like Gulu has been low tax collection, which hampers their ability to improve service delivery. Consequently, the government is relying on the Domestic Revenue Mobilization for Development strategy to increase revenue collections among local governments from a total of just Shs50 billion to at least Shs300 billion over the next five years.
To attain this ambitious target, the Local Government Finance Commission has stressed the importance of various measures, including maintaining up-to-date property registrations, computerizing property registers for efficient and comprehensive collections, consistent property valuation, and automating property rate administration using the Integrated Revenue Administration system.
Mr. Kidega mentioned that Gulu City authorities have agreed on an 8 percent property tax rate. Property taxes serve as a significant source of revenue, with at least 85 percent of the proceeds allocated to local government services such as road infrastructure, drainage, and street lighting.
The government, in collaboration with RippleNami Uganda through the ‘Services and Fair Tax for Property Owners’ campaign, supported by Usaid’s Domestic Revenue Mobilisation for Development activity, has been engaged in sensitization efforts to strengthen dialogue and cooperation between administrations and property owners. The aim is to enhance the realization of social services through property tax contributions.
