New local govt strategy targets Shs1t in revenue collection
Local Government minister Raphael Magyezi addresses Chief Administrative Officers (CAOs) at a meeting in Kampala on February 23, 2024. PHOTO/SYLVIA KATUSHABE
What you need to know:
- Mr Raphael Magyezi, the Minister of Local Government said they want to see this strategy increase revenue from Shs380 billion to Shs1 trillion in two years
A new local government (LG) own-source revenue mobilisation strategy is targeting to collect at least Shs1 trillion in revenue in the next two years.
Addressing journalists on Tuesday, Mr Raphael Magyezi, the Minister of Local Government said they want to see this strategy increase revenue from Shs380 billion to Shs1 trillion so that LGs are not simply seen as dependents of central government but also as revenue contributors.
"We have been trying alone as the ministry but in collaboration with civil society, Uganda Revenue Authority (URA), and other ministries such as Finance, we are now saying it is time to improve our revenue," he said.
Mr Magyezi emphasised that digitalisation of revenue is the way to go rather than the local government revenue staff issuing out receipts.
"We are going to work with development partners and civil society to see how best we can do it electronically. This is going to work because we have tried it in markets and we have seen revenue improving from just Shs2 million to Shs20 million because the taxpayers want to be sure that this money is going to the government rather than being stolen here and there," he noted
The strategy also emphasises accountability which is linking revenue collection to service delivery to see that LGs become better agents of economic development and change the lives of the people.
The manager of revenue collection at URA, Ms Kelemensio Busingye said that out of 176 LGs (135 districts, 31 municipal councils, and 10 cities), they have interfaced with 155 and in two and a half years, Shs144.6b has been collected.
"I will reiterate the fact that in a world that is constantly evolving, the only way to stay ahead in increasing government revenues is through innovation. LGs should therefore embrace emerging IT trends, and be proactive in adapting the processes, procedures and systems to also meet the changing needs of our taxpayers," she said.
She also implored stakeholders in this revenue collection strategy to ensure they achieve the set objectives in the strategy.
