Review

A critical analysis of the right to equality before the law in property rates tax law and practice in Kampala capital city authority

Joseph Murangira

Makerere University, Kampala-Uganda

E-mail: josephmurangira@yahoo.co.uk

Accepted October 06, 2014

Abstract

Property rates tax is a principal source of revenue for local governments, a significant operating cost for business, and one of the biggest components of housing costs for many consumers. Property rates tax is levied by local governments on the properties within their jurisdiction. Property rates tax in Uganda is governed by the Local Governments (Rating) Act, No. 8 of 2005 and its Regulations. The Act empowers Kampala Capital City Authority (KCCA) to levy property rates tax and provides the procedure of assessment, collection and enforcement of payment of property rates tax. The Act also provides for exemptions from property rates tax. This Act was amended by the Local Governments (Rating) (Amendment) Act No. 12 of 2006 which exempts assessing and collection of property rates tax on buildings which are residences and “owner-occupied”. Although the extension of exemptions has negative budgetary ramifications for KCCA, the main argument in this article is that such exemption constitutes a violation of the right to equal treatment of individuals as enshrined in international instruments to which Uganda is a signatory and the national Constitution. This article is divided into five sections. The first section provides an introduction. The second section provides an overview of the concept of property rates tax while the third analyses the concept of equality before the law. The fourth section analyses the right of equality before the law in light of property rates law and practice in KCCA. The last section provides a conclusion to the article. The article concludes that persons who are in equal economic situations are not treated equally by property rates law and practice in KCCA, contrary the right to equality before the law.

Keywords: Property rates tax, right to equality before the law, Kampala Capital City Authority.