Participants during sub county tax interface engagements at Ivukula

Adequate revenue mobilization is crucial for local governments to finance their social and economic expenditure obligations. It helps them provide necessary services and infrastructure to their communities. Local governments in Uganda, and for this case in Namutumba district, have struggled with low revenue mobilization efforts.

Tax revenue as a percentage of the national GDP is very low, often staying at or below one percent. Additionally, the tax collection ratios in the 19 urban and rural lower local governments in Namutumba district are even lower, with some below 0.5%. Taxpayers in the district have attributed it to loss of trust and confidence in the management and accountability of taxes collected.

This lack of confidence has resulted from various factors, such as perceived mismanagement of funds or lack of transparency in tax collection processes. It’s from such background that AAU, CIDD-UG and Uganda Revenue Authority (URA) deliberately partnered to enhance local revenue generation and management for improving public services to the underserved communities.

The immediate results of this engagement have been renewed commitment by first leaders to strengthen accountability and secondly form a basis for taxpayers to comply. This is expected to improve on revenue generation and management in the district.