THE Kampala City traders Association has threatened to sue Kampala City Council over irregularities in taxation.
Everest Kayondo, the vice chairman of the association, said they were claiming over sh3.5b from the city council following illegal licence fees it has been levying on them for the last 10 years.
We will take the City Council to court. Our lawyers are compiling evidence. Therefore whoever paid more money should present their receipts to enable us claim refund, Kayondo said at a press conference last week.
He urged traders to register with the association to claim for the fees theyhave been paying for the past 10 years.
Last May, the association petitioned Parliament seeking a probe into the legality of the trade licence fees levied by the City Council prior to the enactment of the Trade Licensing Amendment Act.
The current Trade Licencing Act requires traders to pay licences of sh100,000 and below, but Kampala City Council had hiked fees up to sh950,000, which traders contested.
The association’s spokesperson, Issa Ssekito, said their move would ensure the institution observes the law.
It is fraud for the country to rob its people, he added.
In its report, the parliamentary committee on tourism, trade and industry recommended that the implementation of the Trade Licensing Act be stayed until illegalities have been straightened out.
The committee also recommended that the trade ministry makes all businesses liable to paying licence fees irrespective of the licences required of them because they are beneficiaries of the council’s services.
During investigations, Kampala City Council attributed the fees hike to the need to increase the cash inflow in the city given the increase in population and inflation.