Lockdown: Rent arrears, URA fines worry

City traders have written to different government authorities seeking help against landlords and Uganda Revenue Authority (URA) demands during the lockdown. 

Landlords are demanding prompt payment of the July rent while URA said it would fine anyone who failed to submit tax returns by yesterday. 

Many landlords have wielded doors of the shops blocking tenants who wanted to vacate them before the month ended. 
Kampala City Traders’ Association (Kacita) spokesman Issa Ssekitto said they wrote to the Resident City Commissioner to create an avenue for tenants without arrears who wish to vacate shops to access the city and shift.

“But some landlords have wielded the doors of the shops to block tenants from leaving. It is unfortunate. The tenants without arrears should be given an opportunity to remove their stock. We can agree and get the list of those traders and then they remove their stock in a planned manner while observing standard operating procedures,” Mr Ssekitto said. 

Two weeks ago, President Museveni ordered a lockdown that affected shops and non-essential vehicles in the city for 42 days to reduce the spread of coronavirus following a surge in cases. 

Tenants in the city are supposed to pay rent on the first day of the month or they face heavy fines. Some traders have been servicing arrears that accumulated during the first lockdown. 

Others lost their stock after it was seized by the landlords for non-payment of arrears.
Unlike last year, Mr Ssekitto said Kacita will not sue the landlords because tenants are divided on that process. 

“We sued landlords for charging rent when the tenants were under lockdown. Some tenants turned against us and the case was dismissed with costs. We are now negotiating with the defendants on how much to pay them. We might not take that course this time,” Mr Ssekitto said.

Efforts to reach the chairman of city landlords, Mr Godfrey Kirumira, were futile. 
Mr Ssekitto said they have also written to URA to extend the time of filing the tax returns since most traders can’t access their premises and documents from their suppliers. The URA had given tax payers up to yesterday to file their returns. 

URA spokesman Ian Rumanyika said those who fail to submit tax returns will be fined as per the law, but an extension can be granted on a case by case basis if someone has applied for it. 

He said taxpayers can do it using online system on the URA website. 

Mr John Kabanda, the chairman of Kampala New Generation Traders Association, said URA officials told them to file paperwork in the meantime, which he said was also difficult because they need money to pay clearing agents and auditors to compute the data. 

“The minimum that a clearing agent or an auditor will demand to look through your books is Shs500,000. Many traders don’t even have the basics to survive in this lockdown,” he said.