Members of Parliament on the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) have resisted Kampala Capital City Authority’s call to amend the law exempting landlords residing in Kampala’s upscale areas from paying property tax.
The MPs led by the chairperson, Abdu Katuntu (FDC, Bugweri County) were responding to a proposal by KCCA officials led by the Executive Director, Jennifer Musisi, asking Parliament to amend the KCCA Act (2006) and have property owners in the high-end residential areas pay property tax.
According to Musisi, people staying in Kampala’s upscale neighbourhoods do not make any contribution yet they demand a lot from KCCA.
“We want the law on owner occupied exemption to be amended because we feel that all citizens should contribute to the improvement of the city,” Ms. Musisi said.
She added: “Citizens staying in affluent areas are exempted yet they subject the Authority to heavy demands about maintaining their roads, street lights and are generating a lot of garbage; we want everyone to make a contribution.”
However, in response, Katuntu said that the law applies to all landlords occupying property both in the upscale and low-scale neighbourhoods.
“Regardless of whether you have property in Kololo or Bwaise, as long as you stay in it you are not required to pay property tax so it does not matter where you stay,” Katuntu said.
Katuntu further said that most of the houses in the upscale neighbourhoods like Kololo and Nakasero are being rented out or occupied by businesses and therefore are subject to property tax.
Katuntu also said that tax is supposed to be imposed in a regulated manner and should not be a punishment to citizens.
Katuntu could not countenance Ms Musisi’s argument that it is hard for KCCA to establish whether the property in the posh residential areas is being occupied by the owners or not, saying that it was her job to establish that.
“The job you do is supposed to be challenging and that is why you are highly paid; if it was easy we would not have to go through the rigorous exercise of recruiting you as the best people,” Katuntu said.
