By Weswa Ronnie
MBALECITY
Mbale City Council Authorities have progressed from ordinary way of collecting street parking fees to digital as a way of increasing the tax revenue base and reducing on tax defaulters.
This was revealed by James Kutosi, the Mbale City Public Relations Officer on Thursday, 18th July, 2024 at Mount Elgon hotel in a press conference that also saw the City Council hand over street parking fees collection and hotel tax collection to new contractors.
Mbale city officially awarded the contract of street parking to Fuel Less contractor while lodge/hotel, ground and property rates collection to Medlid contractors limited for a period of one year.
Fuel less contractor has replaced Medlid contractors limited which has been in charge of street parking at Mbale city for the last year.
According to Kutosi, Fuel less contractor is going to use digitalized street parking system for collecting street parking fees where by all vehicles which will be paying street parking fee will wire direct into the system not to pay to individuals as has been the case.
He added that the machine will immediately issue out an electronic receipt for the client indicating that money has been paid to the Mbale city account.
Mr. Kutosi said “previously they have been collecting only Shs14.5 million monthly as street parking fee which is less compared to the vehicles Mbale city has.”
He said that the money has been ending up in the pockets of some individuals rather than being remitted to the city account arguing that the story will now after be different.
The public relations officer also said that low tax collection has been affecting Mbale city operations in terms of service delivery for example paying allowances of councilors, repairing Infrastructures among others.
Matia Mubangisi, the managing director Fuel less contractor expressed his happiness with the contract saying he is going to cooperate with Mbale city to make sure that they raise the street parking Fees collected from Shs14M to Shs30M monthly.
He said that Mbale city is going to have computer screens at the Town Clerk’s Office, Mayor’s Office, and reception among other corners which will be showing street parking payments per minute in 24 hours in a day.
Mr. Mubangisi said “collection of street parking fees is going to be more public than before such that everyone can know cash flow”.
The contractor said that this technology is going to reduce the number of cases related to the theft of vehicles in the Mbale city and Uganda at large.
He said that if a driver pays money as street parking fee, the number plate of his or her vehicle will be entered into the system whereby it’s easy for police to track it in case someone steals it and takes it to any part of this country.
“I urge the public to embrace this technology and be cooperative in paying taxes for street parking as a way of developing the city,” Mr. Mubangisi said.
Muhammed Wafuba, the managing director of Medlid contractors limited urged the media and political leaders to sensitize the hotel owners about the advantages of paying taxes before them enforcing the same.
He said that the majority of hotel owners in the city think paying tax is a punishment not knowing that it’s for the good of the city.
Silaji Wamundu, one of the drivers in Mbale city expressed his happiness with the technology saying this is going to give them hope that money paid is remitted to Mbale city account.
“It’s true some of have been absconding from paying street parking fees because of the fear of our money being swindled by a few individuals,” Mr Wamundu said.
Stephen Mulokole, also a driver urged his fellow people from the city to embrace the technology and comply with the contractor in paying street parking fees.
Kakai Kharite, the Deputy Mayor of Mbale City said that in the last financial year of 2013/14, they budgeted to collected 5 billion Shillings in local revenue but they ended up collecting only 1.8 billion due to tax defaulters and Technocrats swindling some of the money which will not be the same case in this financial year after getting this technology.
”In this financial year, we have budgeted to get 8 billion shillings from local revenue and we are sure we shall get all that money,” Mrs. Kakai said.
