Tororo Councillors Storm District Offices Over Shs596m Property Tax

A delegation of angry councillors from Kayoro Sub-county in Tororo District on Monday stormed the district local government offices, demanding urgent action over what they described as persistent tax evasion by major private firms operating in their area.

Led by Andrew Opio, the secretary for production in Kayoro, the ten-member team confronted district leaders with claims that companies including Dongsong Energy Group, Electromax, and Tororo Solar North had defaulted on property tax payments amounting to over Shs596 million.

The councillors first descended on the office of the district chairperson, where they were received by Vice Chairperson Rebecca Akumu.

They sought accountability and immediate district-level intervention, citing worsening public service delivery in Kayoro as a result of the revenue shortfall.

“Our communities lack clean water sources, and our schools are in deplorable conditions. Children are sitting on bare floors,” Opio told district officials.

“Yet these companies continue to operate profitably while ignoring their legal obligation to remit property taxes.”

Property tax is levied under the Local Governments (Rating) Act, 2005, which empowers sub national authorities to collect annual dues from commercial and institutional properties.

The law stipulates that proceeds from the tax are to support local services such as education, water, sanitation, and infrastructure.

According to Opio, Dongsong Energy Group alone owes Shs425 million, down from an initial Shs750 million following a revaluation by local authorities.

Electromax reportedly owes Shs165 million, while Tororo Solar North’s arrears stand at Shs6.5 million.

“Even after rate reductions, these companies have blatantly refused to pay. This is not just economic sabotage, it’s a gross violation of the Local Governments Act, which empowers us to collect these taxes for the development of our people,” Opio said.

Vice Chairperson Akumu urged calm and assured the councillors that the district would take up the matter and engage the defaulting entities.

“These are not personal complaints but issues of community welfare. The district is equally affected. We will handle the matter and ensure these entities honour their obligations,” Akumu said.

The councillors had also planned to present a petition to the Resident District Commissioner (RDC), but found the office unavailable at the time.

They resolved to return to Kayoro and await a formal response from the district leadership.

Analysts say the confrontation reflects a wider challenge within Uganda’s decentralised tax system, where many local governments struggle to enforce compliance from well-connected or powerful private players.

The enforcement gap, experts argue, undermines service delivery and public trust in local governance.

Should the companies remain in default, Kayoro Sub County may invoke Section 12 of the Rating Act, which provides legal pathways for recovering unpaid taxes through court proceedings or seizure of property.

The district is now under pressure to act decisively, as frustration grows among local leaders who say the status quo leaves their communities underfunded while companies extract value without contributing their fair share.