Assessment of Local Revenue collection practices at Kampala Capital City Authority

Abstract

The study assessed revenue collection practices at KCCA, and in doing so, it sought to establish the forms of local revenue, strategies used to collect local revenue, challenges associated with local revenue collection and possible strategies to improve local revenue collection by the authority. The study based on the foundation that despite the persistent deficits in local revenue collections by most entities, local revenue plays a significant role in the efficient running of organizations including any local government for the achievement of its development objectives. The research adopted both quantitative and qualitative approaches. Primary data were collected using closed ended questionnaires and in-depth interviews to establish the local revenue collection practices at KCCA. Data were analyzed for descriptive statistics using SPSS version 20. Frequencies and percentages were used to describe the variables. Results on the forms of local revenue indicate that KCCA generates most of the local revenue from taxes (property, hotel and local service taxes), business licenses and markets dues. The dominant strategies KCCA uses to collect local revenue include use of field revenue officers, and use of electronic services such as e-citie platform. The challenges associated with local revenue collection include majorly tax evasion, poor revenue administration, limited tax base and shortage of experienced man power. The possible strategies to improve local revenue collection include undertaking regular sensitization of tax payers and other stakeholders, active and positive participation of political actors and addressing the shortage of skilled man power. The study recommends that KCCA should invest in frequent capacity building of staff for effective administration of local revenues, regular sensitization of tax payers on the benefits of tax compliance and the adverse effect of tax evasion.