Gulu residents reject move to tax compensation

The ongoing road construction in Layibi division, Gulu Municipality where the residents have rejected Tax Identification Number. PHOTO BY STEPHEN OKELLO

What you need to know:

The land owners claim foul play in the tax identification number policy.

GULU- A total of 80 people who were meant to be compensated for the land taken up by the ongoing 74 kilometres Gulu- Atiak road construction in Layibi division, Gulu Municipality, have rejected the Ministry of Finance’s directive of a Tax Identification Number being a requirement for compensation. Having a TIN number means there will be a tax deduction on the compensations.

In a meeting held at Layibi Division headquarters at the weekend, the beneficiaries within Gulu Municipality asked the ministry of Finance to put on hold the demand, arguing that the first beneficiaries got money without Tax Identification Numbers.

The residents who are protesting the Tax Identification Number requirement, are part of the 360 beneficiaries who were to be compensated Shs7.2b.

The effects of the delay
Ms Sarah Akello, a bar and restaurant operator, says the delays in compensation is a setback in her business and the new directive of Tax Identification Number has worsened the situation.

Mzee Martin Uman, 78, a resident, says: “I operate my business with difficulties, in front of both my business premises is where they park the bulldozers and other machines that have also closed the entrance to my business.”

Mzee Uman who claims he is owed Shs5m in compensation, says recently they received communication that the those who are still demanding for the compensation, should each first have a Tax Identification Number, which was not the case with the first beneficiaries.

“This is unfair treatment as far as compensation is concerned.
Why are they demanding Tax Identification numbers from only us, yet the first beneficiaries got their cash without any strings attached,” says Mzee Uman
The chairperson compensation committee, Mzee Okwonga Latigo, says: “There are fears that there might be foul play in one of the ministries that’s why the Tax Identification number has come up. We have not even been explained too as to why they are levying on the beneficiaries.”

What the local leaders think
LC3 chairperson Layibi Division Alfred Oluba says the Gulu-Atiak road construction is an old project that should be exempted from such fares, adding that the Ministry should consider paying the balance or else they will block the ongoing road construction in the area.

“These are delaying tactics of not paying the locals their cash, but we shall halt the project until payment is complete,” Mr Oluba said.

The project engineer Uganda National Road Authority, Mr Martin Olwal, says the Tax Identification number is a directive from the ministry of finance that every person getting compensation from government projects should have it.

“There are fears that the road construction might take some time since the beneficiaries are threatening to stop the contractors from operating,”
He added that as UNRA, they submitted their beneficiaries list for compensation to the government.

The remaining beneficiaries are demanding for Shs1.5b.