By Sadique Bamwita
ENTEBBE
The Entebbe Division B” LC3 Chairperson is at war with the Uganda Civil Aviation Authority (UCAA) accusing the authority of failure to pay the new property tax rate amounting to Shs2.8 billion for the financial year 2023/2024.
Mr. Richard Sekyondo raised the complaint on June 20th, 2024 during a sideline interview held at the Uganda Civil Aviation Authority Head office in Entebbe.
He says as council, they issued a new property tax after involving the Chief government valuer who valued all the new facilities and businesses at the airport and discovered that the authority can generate Shs28 billion every financial year. He added that under the property tax law, council is supposed to get 10% (2.8bn) out of the Shs.28 billion every financial year.
He revealed that when council presented an invoice for the new property tax to the authority, they attempted to engage them in a discussion but it was too late because council had already passed it and only required implementation.
Mayor Richard Sekyondo noted that for several years, the authority has been paying Council Shs360m per year as property tax but with the new developments and businesses, the property tax was increased last financial year after recommendation from the Chief government Valuer who valued the Entebbe Airport facility to be worth Shs28 billion in terms of revenue collection every financial year.
“UCAA wants to pay council basing on the old valuation of Shs360m yet they received the new tax rates in time before the financial year 2023/2014 began. The authority kept quiet and when we intensified our demands, that is when they told council that they were not aware of the new tax rates, “he told this publication.
Mayor Sekyondo says the delayed remittance of new tax levy to council by the authority has stalled most of the council works adding that as council they are open to discussions regarding the contentious issue.
“There is room for UCAA to engage us on the subject matter and see how best we look into their grievance,” he says.
In his response to the new property rate, Vianney Lugya, the Manager Public affairs at the Uganda Civil Aviation Authority (UCAA) said:
“It’s not true that Uganda Civil Aviation Authority has failed to pay the new property tax to council as the Division ‘B’ chairperson alleges. The authority is a very complaint taxpayer and honors all its tax obligations not only to Entebbe Division B municipal council. There is an outstanding obligation between council and the authority. I advised council that before you issue a new tax you don’t need to serve us a new invoice which we have not agreed upon.”
He argued that there are outstanding rates that are known to them and that they have requested council to submit the new rates, as soon as they receive the new tax invoice promising to clear it. He however, said, they had not yet received any new invoice.
“So there is no way you can pay for a service which has not received a tax invoice. But since we are all government entities, we have advised council to engage us in a discussion. We need to discuss the increment and that’s why we engage stakeholders in everything we do, hence stakeholders’ engagement is paramount.’
‘The issue of property tax is simple to resolve, if council accepts to engage us in a discussion. There is no issue to worry about regarding payment of the new property tax and as soon as UCAA receives the invoice, it will be honored as this financial year closes instead of fueling unnecessary debate,” said Mr. Lugya.
