Kampala Institutional and Infrastructure Development Projects (KIIDP)
City Raises More Revenue, As It Simplifies Tax Collection
New and simplified methods of collecting tax in Kampala city are yielding increased revenue. In just two years, tax collections rose by 20 percent by end of the fiscal year 2015/2016. Just like any other city, the cost of maintaining and providing quality services to an urban population of over four million is high. Hence, the need for a wide local tax base for increased and sustained revenue generation.
This notable increase in revenue collection is attributed to institutional efficiency and reforms in tax administration. These reforms have made it easier for clients to pay taxes. Some of the reforms relate to the implementation of an automated revenue administration system (e-CITIE) which facilitates both electronic and mobile phone payment platforms. KCCA also undertakes tax payer compliance management programs to promote voluntary tax payment. The institution also assists tax payers in meeting their obligations by granting installment payment plans to boost revenue collections.
Fred Andema, Deputy Director Revenue Collection, KCCA said, “Revenue collection in Kampala city increased by 15 billion shillings (20 percent) in two years by end of fiscal year 2015/ 2016. This is impressive, but not enough. The finances needed to effectively deliver services in Kampala are enormous.” He said, “Even the current budgeted revenue estimates of UGX 112 Billion for the fiscal year 2016/17 is not adequate. We therefore need to undertake additional interventions to step up revenue collections.”