Residents and landlords in Fort Portal City, located in western Uganda, have voiced their concerns about the high property taxes they are facing, which they find difficult to afford due to current economic challenges affecting their businesses.
The landlords are worried about the lack of a consistent property tax fee structure and are requesting a reevaluation of the rates to ensure fairness and affordability, particularly during these challenging economic times. They have urged city authorities to standardize the rates to ensure that property taxes are distributed more equitably among all property owners.
Mr. Jackson Kasiime, a landlord in Kasusu cell in Fort Portal City, expressed his dissatisfaction, stating that his property tax liability significantly increased after a recent reevaluation.
“Previously, I paid Shs 170,000, but this time, I received a receipt asking for Shs 700,000 for the same property. I’m puzzled about the valuation method used. Is the government treating us fairly, or is it pushing us out of business?” he questioned during a meeting between property owners and Fort Portal City authorities at Nyaika Hotel. The event was organized by RippleNami, a non-governmental organization, as part of the Service and Fair Tax for Property Owners project, funded by the United States Agency for International Development (USAID).
Property owners with disabilities (PWDs) have also joined the call for tax relief, appealing to the city’s leadership to exempt them from property taxes due to their financial vulnerability.
Mr. Kamurasi Badru Muhammed, a PWD residing in the city, argued that property taxes impose an undue burden on their vulnerable group due to the lack of adequate financial support.
“In the real estate industry, we are vulnerable. We appeal to the government to exempt us from such taxes. This would not only motivate others in our category to invest more in real estate but also encourage property owners to construct buildings that are accessible to PWDs,” he emphasized.
The city mayor, Mr. Edison Asaba Ruyonga, explained that Fort Portal currently imposes a five percent property tax, which is lower than the rates in other cities where property owners may pay up to 10 percent of their property’s value.
He stressed the importance of property tax in funding essential city services such as garbage collection and town beautification. However, he acknowledged that some property owners evade taxes, and some properties are not properly evaluated due to collusion between tax collectors and property owners.
To address these issues, the city has introduced a digital system enabling property owners to make tax payments through banks. This digital tool is expected to reduce opportunities for collusion and increase transparency in the tax collection process.
