Ntungamo District is stepping up public awareness campaigns on a six-percent tax on commercial rental income after resistance from property owners in some areas, with officials citing limited awareness of how the levy is assessed and collected.
Ntungamo District Local Government is intensifying community sensitisation on a six-percent property tax following resistance from some property owners who say they have not been adequately informed about the levy and how it is assessed.
The tax, approved by the district council in the previous financial year, was scheduled to take effect on July 1, 2026, and applies to commercial buildings in designated commercial centres.
However, months after its planned implementation, district authorities say public awareness and compliance remain major challenges.
Saidat Tushabe Muhereza, chairperson of the Finance, Planning, Administration, Audit, Council and Statutory Bodies Committee of Ntungamo District Local Government, said implementation had started, although many residents were still unfamiliar with the tax.
“Many people are not yet used to it, and as Ntungamo District Local Government, we have started implementing it, though we are still having challenges. Many people don't know how it is done and when it is collected,” Muhereza said.
She explained that the levy is charged on commercial buildings in designated commercial centres, with property owners required to pay six percent of their annual rental income.
“Property tax is levied on commercial buildings in commercial centres. That is six percent of what you are getting from your rentals per year,” she said.
The implementation has attracted mixed reactions across the district, with some communities questioning the levy while others have begun complying.
Communities in Kitwe have reportedly refused to pay the tax, while property owners in Ntungamo Municipality have shown greater compliance, highlighting differences in public awareness and acceptance across the district.
Muhereza attributed some of the resistance to misconceptions about the purpose of the levy, saying authorities needed to explain its legal basis and intended benefits.
She urged residents to abandon suspicions that the district intended to take their money unlawfully, emphasising that the tax was a legitimate revenue measure approved by the district council.
To address the concerns, the district is engaging parish chiefs, sub-county chiefs and other stakeholders, equipping them with information to help explain the tax assessment and collection process to communities.
The levy is part of the district's efforts to strengthen local revenue mobilisation and increase its capacity to finance service delivery.