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Mbale City loses at least Sh2 billion To Tax Evasion

Mbale City loses at least Sh2 billion To Tax Evasion

In a bid to harness revenue collection in local government units across the country, the Ministry of Local Government has conducted a capacity-building on the newly introduced digital revenue collection dubbed the e-log revenue system 

While facilitating the training of councilors of Mbale city at city council chambers, Charles Mwijukye principal inspector at the Ministry of Local Government stressed that the systematics is intended to bridge the gaps in the revenue collection systems in the country. 

Mbale is among the recently established administrative units in the country transitioning from a municipality to a city status, the Mbale city council has grappled with revenue collection challenges. some officers are reported to use council receipts to collect revenue yet the funds don’t reach council coffers. 

Mbale council speaker, Abdallah Magambo noted that for the financial year 2022-23 budget the council projected 5.9 billion but only realized 2 billion, he attributes the shortage to a poor revenue collection system. 

During the training of Mbale city council staff and councilors at the city chambers, Charles Mwejukye retaliated on the importance of forming teams to conduct a comprehensive registration of taxpayers. 

Ccouncil officials raised concerns about the effective revenue collections from the Mbale-kampala taxis whose drivers have been paying revenue to Kampala authorities. Mwejukye assured that with the e-log system, this will be history.

Through their communications officer Isa Kamadi Kutosi, the Mbale City Traders Association welcomed the new system. they however called for more capacity building to facilitate the adoption of the new system. 

Mbale City collected shs2.3 billion out of the projected shs6 billion last financial year leaving a 61% funding gap.

The Ministry of Finance is also focusing on the capacity of local governments to enhance local revenue collection in the wake of waning donor funding to the central government.

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