Lukwago Calls for Audit of Kampala Tycoons Over Property Tax Discrepancies

Lukwago Calls for Audit of Kampala Tycoons Over Property Tax Discrepancies
Kampala Lord Mayor Erias Lukwago during the council sitting

Kampala Lord Mayor Erias Lukwago questions why major property owners continue to pay disproportionately low property taxes despite KCCA collecting over Shs1.143 trillion in revenue—an increase from previous years.

Kampala Lord Mayor Erias Lukwago has called for an independent audit into the property tax payments of some of the city’s wealthiest businessmen, including Sudhir Ruparelia, Hamis Kiggundu (Ham), and Drake Lubega, over allegations of undervaluation and tax evasion.

Speaking during a Kampala Capital City Authority (KCCA) council meeting on the authority’s Shs 837 billion budget, Lukwago questioned why major property owners continue to pay disproportionately low property taxes despite KCCA collecting over Shs1.143 trillion in revenue—an increase from previous years.

He argued that small-scale property owners bear a heavier tax burden, while influential businessmen with extensive real estate holdings exploit loopholes to minimise their tax obligations.

Lukwago suggested that a thorough audit would reveal that these tycoons should be contributing at least Shs 100 billion annually in property taxes.

He also pointed out KCCA’s limited valuation capacity, noting that the authority employs only one property valuer, making it difficult to fairly assess high-value properties. He proposed hiring additional valuers to strengthen the process and ensure a more equitable taxation system.

The Lord Mayor further accused some wealthy property owners of leveraging their influence within KCCA to resolve tax disputes informally, avoiding full compliance.

He called for urgent action to address these revenue leaks and improve city funding for infrastructure and services.

His remarks have sparked debate within the council, with some members supporting his call for reforms, while others advocate for a broader review of the taxation framework.

The KCCA council is expected to deliberate further on these concerns as it finalises budget allocations.

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