The Kampala Capital City Authority(KCCA) has resolved to suspend trade licenses, market dues and commercial user fees for businesses during this period of the lockdown.
This was revealed by the Lord Mayor Erias Lukwago who said the authority’s cabinet had arrived to a conclusion after a thorough assessment of the COVID-19 pandemic and its related effects.
Lukwago said that the total KCCA budget is Shs 521 billion and out of the same, approximately Shs 100 billion is expected to be generated from local revenue.
He noted that apparently, many city businesses need to be jump started and it may not be proper for KCCA to impose taxes during a time when they are struggling.
“The cabinet resolved that trade licenses be suspended up-to 31st December 2020 and this grace period will enable the business community to get back to business. Market dues be suspended up to 31 December 2020,” he said.
Lukwago noted that majority of the urban poor ply their goods in the markets and they have equally suffered the consequences of Covid-19.
“Commercial user fees were also suspended up-to 31st December 2020. There was a proposal by the minister to reintroduce commercial user fees for the taxis and boda-bodas in the city,”he noted.
He said the KCCA budget will be scaled down and the minister of Finance has been tasked to sit down with the executive director to work out the modalities of effecting this.
“The cabinet also realized that the institution is faced with a huge crisis where it is currently operating without regulated procurement processes. The amended KCCA Act repealed sections 61-70 of the Parent Act which initially regulated the city procurement and disposal processes,”he said.
Lukwago said this needs to be addressed as a matter of urgency by using the existing KCCA Act which provides a remedy in section 5(4 and accordingly, in line with Section 17(d) of the Local Governments Act,