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Local taxes in Uganda

Question: How do local governments administer and collect taxes in Uganda?


Local Governments administer and collect taxes in Uganda by using the provisions of The Constitution and The Local Government Act Cap 243 in particular.

The Government of the Republic of Uganda devolved functions, powers and responsibilities to Local Governments through its decentralization policy, legally provided for in the Constitution and operationalised by the Local Government Act, cap 243.

Article 176(2) (d) of the Uganda Constitution provides that: there shall be established for each local government unit a sound financial base with reliable sources of revenue.

Also Article191 (1) of the same Constitution provides that: Local Governments shall have power to levy, charge and collect appropriate fees and taxes in accordance with any law enacted by Parliament.

These sources of revenue for the Local Governments are echoed in the Fifth Schedule of the Local Government Act Cap 243.

The Local Governments Act operationalises and enhances these provisions and section 80 provides that: Local Governments may levy, charge and collect fees and taxes, including rates, rents, royalties, stamp duties and registration and licensing fees and the fees and taxes that are specified in the Fifth Schedule to this Act.

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