KCCA plans to levy tax on UPE schools
Posted Wednesday, March 13 2013 at 02:00
Authorities say free-education schools should remit some percentage of money received from businesses they operate.
Kampala Capital City Authority (KCCA) is proposing that government institutions implementing free education should remit 10 per cent in taxes from businesses within schools.
According to sources, KCCA held consultation meetings with school head teachers around the city on a law which will only affect schools under Universal Primary Education (UPE) and Universal Secondary Education (USE)
According to the proposal, KCCA expects the percentage of the money from among others; hiring out school play grounds, halls and canteens.
The sources who attended the meeting, however, said the law was still in its early stages and head teachers had submitted their proposals, “but KCCA is yet to get back to them”. The development was first unveiled on Monday by Kalungu West legislator Joseph Ssewungu who told the media that it will be unfair for KCCA to effect the tax, considering the way government-aided schools operate in the city.
Minimal government support
“Many of these schools have high student numbers yet the support from government is minimum. We cannot allow such a thing to happen,” Mr Ssewungu said at Parliament. According to some of the school head teachers that this newspaper managed to speak to, many of them do not agree with the plan, saying that it would deprive them of the little money they earn to carryout different programmes without help from the government.
This newspaper understands that several government aided schools usually receive capitation grants- money used for day to day running of schools activities late and with these schools are always pushed to find alternative means of finding revenue.
Mr Robert Kalumba, the KCCA deputy spokesperson, however, insisted that the proposal is still a matter of discussion between several departments but he justified it, saying that money from such activities ought be put to appropriate usage.