Council wants tax arrears probed

NEBBI. Councillors in Nebbi Town have asked for an investigation into council’s failure to remit more than Shs280 million to Uganda Revenue Authority in withholding tax.

The councillors say the accumulated debt is negatively impacting service delivery and tying down council’s ability to work.They also wonder why the town council failed to remit the money yet it was being deducted from their salaries and allowances. Recently, URA froze the town council’s accounts on the account of failure to remit withholding tax since 2001 to date.

Mr Geoffrey Olangi, the Nebbi Hill Ward councillor, said: “The issues of accumulated tax arrears should be investigated by the IGG. We suspect some officers in the technical wing to have misused the money.”

According to Mr Olangi, coucillors and civil servants are subjected to a 30 per cent salary deduction every month meant for withholding tax. However, Ms Benedetti Awor, the acting town clerk, said council had already remitted Shs96 million as part payment of the more than Shs280 million. In 2011, URA froze the accounts of the council meant for Naads activities that had accumulated to Shs75 million.

The council was accused of failing to remit an accumulated salary allowances and water bills since 2006.

Activities affected Mr James Chombe, the town council chairperson, says a number of activities have been halted, since council cannot provide allowances to effectively run them.

SOURCE: Daily Monitor

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