Gulu City revenue collections rise to shs3.2bn
Gulu City has witnessed a substantial surge in local revenue collection, reaching 3.2 billion shillings in the just-ended financial year of 2022/23.
This remarkable increase is attributed to the implementation of the Integrated Revenue Administration System (IRAS) by the Ministry of Finance. The IRAS is an automated process that eliminates the need for physical transactions between taxpayers and collectors, streamlining the revenue collection process.
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Mayor Alfred Okwonga expressed pride in what he called “remarkable success in revenue collection” in Gulu city.
The funds collected from local revenue play a crucial role in enhancing city services, including street cleaning, road construction, and market development.
However, the surge in available funds has ignited tensions among city mayors, with accusations of corruption and inefficiency.
Patrick Lumumba, mayor of Bardege-Layibi division, accused the city council of corruption, stating,
"Gulu city council is on record for being very corrupt," while Geoffrey Otim, mayor of Pece-Laroo Division, added, "Our relationship with the city is not healthy. When we want to utilize our share, the city wants us to beg."
Accusations have also been directed at Mayor Alfred Okwonga, including claims of a lavish lifestyle, poor communication skills, and delays in releasing locally collected funds.
In response, Okwonga asserted that division mayors lack accountability for the disbursed funds.
In a controversial move, the Gulu city council granted a private license for the collection of property rate tax in October 2023.
By January 2024, the city had collected 451,630,160 shillings, surpassing previous fiscal year records.
Despite the revenue growth, concerns arise as Gulu city lacks an independent bank account for property rate tax, and division audits have been neglected for three years.
Residents, represented by Mark Moro of the Uganda National Chamber of Commerce, Gulu chapter, have called for transparency in financial reporting.
Tax lawyer Kiiza Oscar warns that corruption could hinder Gulu city's growth and development, emphasizing the potential backlash from taxpayers.
But Okwonga remains optimistic, asserting that with proper accountability, Gulu will become a model city in Uganda.
