Ntungamo District Intensifies 6% Property Tax Sensitisation Amidst Resistance

Ntungamo District Local Government is ramping up efforts to inform residents about a recently introduced six-percent tax on commercial rental income. The move comes as some property owners have expressed resistance, citing insufficient understanding of how the levy is calculated and collected.

The property tax, endorsed by the district council in the last financial year, was slated to begin on July 1, 2026, targeting commercial buildings situated in designated commercial zones.

Despite the planned start date, district officials acknowledge that public awareness and compliance remain significant hurdles. Saidat Tushabe Muhereza, chairperson of the district’s Finance Committee, noted that while implementation is underway, many individuals are still unfamiliar with the tax’s mechanics.

“Many people are not yet used to it… Many people don’t know how it is done and when it is collected,” Muhereza explained. She clarified that the tax applies to commercial properties in commercial centres, requiring owners to pay six percent of their annual rental earnings.

The implementation has been met with varied responses across the district. While property owners in Ntungamo Municipality have shown higher compliance rates, communities in areas like Kitwe have reportedly refused to pay, underscoring disparities in public understanding.

Muhereza attributed some of the resistance to misunderstandings regarding the tax’s purpose, stressing the need for clear communication about its legal basis and intended benefits for service delivery. The district is now collaborating with parish and sub-county chiefs to disseminate accurate information and address concerns about the tax being an unlawful attempt to collect funds.

This initiative is part of a broader strategy by Ntungamo District to enhance its local revenue generation capabilities and bolster funding for essential public services.

Source: Nile Post