Government, through the Local Government Finance Commission, has launched a new digital system aimed at improving revenue collection and accountability across local governments.
The system, known as the Integrated Revenue Administration System (IRAS), is intended to eliminate manual cash collection, which has been associated with loopholes that can lead to corruption and misappropriation of funds collected by village and town councils.
The system was launched by the State Minister for Finance, Amos Lugoloobi, while officially opening a conference in Kampala that brought together local government leaders to share ideas on expanding revenue collection at the local level.
Lugoloobi said the technology, which had earlier been piloted, would help improve revenue collection and strengthen accountability in local governments. He warned leaders against misusing public funds, urging them to ensure that the money collected is put to its intended use.
The minister also challenged local government leaders not to leave revenue collection solely to tax officers but to actively sensitise communities about their tax obligations and explain the benefits of paying taxes.
He further urged leaders to improve revenue-generating services and infrastructure, including markets and roads, to encourage compliance and expand local revenue sources.
Meanwhile, the Chairperson of the Local Government Finance Commission, Isaac Musumba, said the commission is targeting Shs 1 trillion in local government revenue collections by the end of the current financial year, up from approximately Shs 500 billion.
During the conference, participants also called for increased sensitisation of boda boda riders on tax payment to support the maintenance of local government infrastructure.
They further emphasised the need to strengthen the collection of property tax, rental tax and taxes applicable to farmers, among other revenue sources.
The introduction of IRAS is expected to support more transparent revenue administration, improve the mobilisation of local resources and strengthen the capacity of local governments to finance service delivery.
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