DP Bloc issues 30 days ultimatum to Lukwago to scrap his property tax - Whisper Eye

DP Bloc issues 30 days ultimatum to Lukwago to scrap his property tax

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DP Bloc a political umbrella that unites the Democratic Party (PD), Social Democratic Party (SDP) led by hon. Mabikke Micheal, and People’s Development Party (PDP) of Dr. Abed Bwanika have given the Kampala Lord Mayor Ssalongo Erias Lukwago an ultimatum of 30 days to revisit the new KCCA property tax.

During a press conference at DP headquarters in Kampala today addressed by Dr. Bwanika, Hon. Mabikke, among others at DP headquarters today Tuesday 25th June 2019 asked Lukwago to denounce the controversial property tax.

Residents in Kampala are opposing the proposed property tax arguing that it was not assessed properly and brought in bad faith. Many have vowed not to pay it or close their buildings due to the exorbitant tax which affects Land Lords directly and tenants indirectly.

In the press statement which not signed by any body accuses Lord Mayor Lukwago as the main person behind the tax which they have named ‘Lukwago tax’, claiming that 6% is too high for those living in Kampala given the economic meltdown currently.

DP Block statement on the Property tax in full;

The new property tax in Kampala is a Lukwago tax because the act enacted by Parliament gives Lukwago and KCCA the discretion to levy or not and to determine the rate from the range of 0 to 12 %.
We are appalled that Mr Lukwago chose a 6 % rate, well knowing the economic meltdown, unemployment and the burden this imposes of on rent increase and the cost of living in Kampala. This tax will not be paid by the land Lord but will be passed on and paid by the tenants.
DP BLOC’s opposition to the Lukwago tax is based on four grounds;

  1. Failure to Sensitize the People as required by the same act. World bank extended a grant of 20 million US dollar to enable KCCA conduct a thorough sensitization about the tax before its launched. KCCA did not conduct any sensitization.
  2. Shody process of the Valuation and assessment.
    The said Grant was also to enable KCCA recruit professional personnel to do the a thorough assessment and Valuation. Valuation is a result of extraction of actual annual rentable incomes. KCCA failed to conduct this process.
  3. The unfair rate of 6%.
    The act gives KCCA power to determine the tax rate between 0 to 12 %. This tax is eventually passed on to the tenant. The rate of 6% is an over charge considering the many tax obligation of our wanainchi.
  4. The levy on Owner / occupier properties
    The Levy is taxable on rentable income, however the assessment lists do not take this in consideration.

The DP BLOCK finds the Lukwago tax detestable, anti people, null and void and should rejected. We demand that;

  1. Mr. Lukwago should rescind his property tax with immediate effect.
  2. A fresh exercise to assess, value and determine the fair tax be undertaken after effective sensitization and engagement of all stakeholders.
  3. Kampala be zoned and rates levied according to capacity and levels of service delivery.
    Zone A – Central Business district, averagely servived be rated at 2.5%
    Zone B – Medium Serviced Zone rated at 1%
    Zone C – Low/No Serviced Zones rated at 0%

We are now issuing a 30 day ultimatum within which Mr Lukwago must to act, short of which, we shall invoke the power of the People in Kampala to remedy this tax crisis.

DP Bloc Presidium

Dated 25th June, 2019

Whisper Eye efforts to get a comment from Erias Lukwago about the ultimatum given to him was futile despite his PA Mr Kintu assuring us that he will get back to us.

The fight between Lord Mayor Lukwago and DP Block leaders is unhealthy to the efforts of opposition to unite together as we draw close to 2021 general elections. People Power Movement and DP Block must find a solution to this rift if Ugandans are to have hopes in the opposition to defeat president Yoweri Kaguta Museveni.