The Kampala Capital City Authority (KCCA) Cabinet has Friday resolved to suspend Trade Licenses, Market Dues and Commercial User fees.
This was in a meeting Chaired by the Lord Mayor Erias Lukwago after a thorough assessment of the COVID-19 pandemic and its related effects and resolved that it is no longer viable to meet the KCCA budgetary projections.
According to the KCCA Cabinet, 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.
The Lord Mayor noted that many city businesses need a jerk start and it may not be appropriate for KCCA to impose taxes during a time when businesses are struggling.
The KCCA Cabinet thus resolved that; Trade Licenses be suspended up-to 31st December 2020 and the grace period will enable the business community to get back to business.
“We have also resolved to suspend Market dues up-to 31st December 2020. The Executive noted that majority of the urban poor ply their goods in the markets and they have equally suffered the consequences of COVID-19,” Lukwago noted.
It was also resolved that Commercial User fees be suspended up-to 31st December 2020 this follows a proposal by the Minister to re-introduce commercial user fees for the taxis and boda-bodas in the City.
“The KCCA Executive body resolved that it would be ridiculous to levy fees from these bodies which have been out of business since March 2020,” Lukwago said.
Accordingly, these Cabinet resolutions are going to be submitted to the Council by the Minister of Finance because the City Executive is duty bound to initiate policies and forward the same for the Council’s ratification in line with the law.
“”We’re forwarding the resolution to council for consideration and approval,” Lord Mayor Erias Lukwago told SoftPower News after the meeting.
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The Amended KCCA Act repealed Sections 61-70 of the Parent Act which initially regulated the City Procurement and Disposal processes. However, this needs to be addressed as a matter of urgency by using the existing KCCA Act which provides a remedy in Section 5(4).