ILLEGAL STAMP TAX: POOR REMUNERATION PUSHES LCs TO TAX RESIDENTS.

A local council court sitting in Ayibiri Cell Arua City. Photo//Dramadri Federick.

By Dramadri Federick

Financial constraints and inadequate government facilitation are pushing some Local Council One (LCI) chairpersons in Arua City to introduce compulsory registration fees for residents and tenants, raising questions about the legality of the collections and the financial burden on households.

In Nunu Cell, the LCI chairperson has announced the commencement of a residents’ registration exercise, requiring each resident to pay 10,000 shillings as a mandatory registration fee.

A similar exercise is underway in Awindiri Cell, where LCI Chairperson Alex Oyer is charging tenants 5,000 shillings for registration.

Oyer says the money is intended to support the operations of his office, including purchasing basic working equipment and facilitating the welfare of committee members. He argues that local council leaders perform numerous administrative and community mobilisation responsibilities despite receiving inadequate financial support from the government.

He maintains that the payment is intended to motivate local leaders and enable them to provide better services to residents.

“What we request the residents is 5,000 shillings to appreciate us, and by doing that, they help to motivate us and enable us to deliver a very good service for everyone,” Oyer says.

He adds that the registration exercise will also improve residential records, with newly registered tenants expected to receive tenancy agreements to help minimise disputes between landlords and tenants.

However, the Arua City Local Council Association says it has not established or approved any mandatory financial requirement for registering residents or tenants, distancing itself from the charges being introduced by individual chairpersons.

The Association’s Secretary General, Ijaga Murushal, acknowledges that local council leaders face significant operational challenges, often purchasing basic office materials using personal resources.

He says the government provides local council leaders with an annual ex-gratia allowance of 120,000 shillings, equivalent to approximately 10,000 shillings per month, which he considers insufficient to support their administrative responsibilities and committee activities.

“We buy office equipment with our money, we buy pens and books, and we only rely on the ex-gratia money, which is not adequate enough to facilitate our activities,” Murushal says.

The financial constraints are particularly concerning given the extensive responsibilities assigned to grassroots leaders.

These include maintaining village administrative records, supporting community security, mobilising residents to participate in government programmes, monitoring public service delivery, promoting sanitation and identifying vulnerable households requiring government assistance.

LCI chairpersons also play an important role in community dispute resolution and linking residents to local government authorities.

However, these responsibilities do not automatically give individual chairpersons the authority to introduce compulsory taxes or registration charges.

Counsel Abibo Fred Arowa, Managing Partner of Sinai Associates and a Trainer of Trainers for local councils in the West Nile sub-region, describes the compulsory collections as unlawful, arguing that local council leaders have no general authority to impose taxes or arbitrary charges on residents without legal authorisation.

Arowa says residents should not be compelled to pay for administrative services without a clear legal basis for the charges.

“It’s unacceptable. The LCs cannot levy taxes on the communities or people within their jurisdiction. If they’re doing so, it is illegal, it is unconstitutional, and it is a fraud,” Arowa explains.

He warns that officials who collect unauthorised payments could face legal consequences, depending on the circumstances and applicable laws.

The controversy highlights a growing tension between the financial challenges facing grassroots administrators and residents’ protection against unauthorised levies.

Although maintaining accurate residential records is important for local security, administrative planning and service delivery, questions remain over whether individual local council chairpersons have the authority to finance these exercises through compulsory payments imposed on residents.

Under The Local Council Courts Act, 2006, Local Council (LC) officials or LCC members who levy illegal or unauthorized charges commit an abuse of office and corruption, which are direct grounds for their immediate removal from office.

Written by newsroom-radiopacis