Fred Adema, the Acting Director of Revenue Collection from the Kampala Capital City Authority, presents the property tax reforms undertaken, the challenges, and the way forward.

1. Property Taxation in Kampala, Uganda
Presentation By
Fred Andema
Ag.Director Revenue Collection

2. Contents
• Background
• Challenges
• Current reforms
• Way forward

3. Background
• Property taxes include: Property rates, rental income tax
and capital gains tax.
• The administration of property rates is governed by the
Local Gov’t Rating Act 2005.
• The Ratings Act 2005 provides for exemptions such as
Owner occupied properties, Houses of worship, residences
of religious leaders, the President, diplomatic missions and
designated cultural leaders.
• Property rates presently account for approx. 25% of the
City`s non tax revenues with a potential to contribute to
over 40%.
• Administration of rates(Billing and collection) is handled by
KCCA

4. Challenges
• Weaknesses in the Ratings Act coupled with delays in obtaining
amendments; Un favorable and ambiguous exemption regime(Owner occupied, vacant land),
Inadequate recovery mechanisms within the law,limintation to rental values in determining ratable value.
• Lengthy and time consuming valuation exercise compounded by limited
property ownership details-Further compounded by non titling of land.
• Perceived double taxation on properties; Property rates Vis-à-vis Rental
income tax. Made worse by absence of Domestic Revenue Mobilization
policy
• Inadequate integration to the Development control functions and the
National Land Information management system. Further limitation is the
weak enforcement of development control activities.
• Tax payer expectation gap
• Limited participation of Political leadership in rates administration
• Valuation exercise is looked at as an event instead of being a process and
has previously been outsourced.

5. On going reforms
• Automation and integration of property valuation and rates
administration process to the Development control
function and land management system-Through the CAM-
CAMV project.
• Review of the Ratings Act.
• Strengthening Compliance Management programs(Client
relationship management, Interest amnesty, Tax payer engagements and
strengthened communication, Audits and Inspections, Debt Management;)
• Mainstreaming and upgrading the valuation function.
• Engage and position political leaders to champion the rates
administration process.
• Developing a Municipal Revenue Curriculum to reskill staff.

6. Way forward
• Harmonize the National tax
framework(MOFPED and LGFC)
• Link services to tax efforts
• Fully Leverage ICT in rates
administration(Integration with other internal departments,
External agencies, Client generation of payment forms, service of demand)
• Active engagement and involvement of
political leadership in rates administration.

7. THANK YOU