Business
CSOs Push for Tax Tribunals and Strengthen Local Revenue Collection
Parliamentary Committee on Public Service
and Local Government to take the lead in
persuading the government to establish and
operationalize Tribunals at sub county level
across the country.
They believe this
intervention is urgently needed to
strengthen revenue collection and address
persistent financing gaps in local
governments.
The appeal was made on Tuesday, 20th January 2026,
during a joint presentation to the committee by Dr Arthur
Bainomugisha, Executive Director at the Advocates Coalition
for Development and Environment (ACODE).
He explained that once Tax Appeals Tribunals are activated, they will help reduce tax evasion and streamline the resolution of tax related disputes.
“Operationalise Tax Appeals Tribunals at sub county level and clarify procedures for property valuation, royalties and fees on
emerging revenue sources such as local beverages, to reduce evasion and disputes and align local revenue growth with the
national domestic revenue mobilisation agenda in NDP III and NDP IV,” Dr Bainomugisha told MPs on the committee chaired by
Hon. Martin Ojara Mapendunzi.
Dr Bainomugisha further called on the government to strengthen local government staffing systems. He proposed that the Local
Government Finance Commission, the Ministry of Local Government, and the Ministry of Public Service coordinate efforts to introduce
revenue officers and dedicated revenue departments in all local governments.
He highlighted the current staffing crisis, revealing that
31% of approved local government positions remain vacant, including crucial posts such as Chief Finance Officers and Land Officers.
According to CSOs, once these structures are in place and properly staffed, the government should introduce performance benchmarks
consistent with NDP IV revenue to GDP targets, rewarding local governments that narrow the gap between approved and actual revenue
collections.
They believe these reforms will significantly reduce revenue leakages that weaken both local and national revenue performance
In a separate session before the Parliamentary Committee on Finance on the same day, officials from the Uganda Revenue
Authority (URA), led by the Commissioner for Domestic Taxes, Denis Kugonza Kateeba, revealed that the Authority collected UGX
16.476 trillion between July and December 2025, against a target of UGX 17.5 trillion. Asked how URA plans to meet its annual
targets, Kugonza said the Authority is focusing on operationalising its tax academy, strengthening competence-based training,
capacity building for newly recruited staff, and broader change management initiatives.
Civil society groups also raised wider concerns regarding the declining share of the national budget allocated to local governments. They recommended revising the granting formula and gradually increasing local government financing to 20% of the national budget by 2030.
They also urged the government to raise unconditional grants to 25%, allowing districts greater flexibility to address local needs. They,
however, welcomed the projected increase of the Regional Development Programme budget to UGX 2.17 trillion in FY2026/27.
On Local Economic Development performance, CSOs warned that by June 2025, the government had already disbursed UGX 3.3 trillion
under the Parish Development Model, but 80% of the funds went to primary production. They cautioned that minimal investment in value
addition, aggregation, processing, and market infrastructure risks exposing farmers to market saturation and falling prices.
CSOs further urged the government to allocate UGX 30 billion for the induction of newly elected local government councillors in 2026,
saying effective leadership depends on proper orientation.
On accountability, they recommended mandatory budget allocations to ensure
District Public Accounts Committees (DPACs) operate effectively, and local internal audit systems are strengthened.
They also drew attention to the fact that 86% of local governments are implementing activities without approved District Development
Plans aligned to the NDP IV framework, a situation they described as detrimental to national planning and resource utilization.
Climate financing was also flagged as a major concern. CSOs noted that most local governments lack dedicated climate budget lines,
predictable financing, and the technical capacity to integrate climate adaptation into their development plans.
As Parliament prepares to engage Ministries, Departments, and Agencies on the FY2026/27 National Budget Framework Paper, CSBAG
members, represented by ACODE, the Uganda Debt Network (UDN), SEATINI, under the stewardship of CSBAG, warned that failure to
address these issues could undermine Uganda’s ambitions under NDP IV, the tenfold growth strategy, and Vision 2040.
