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Kampala, Uganda

E-Citie for tax collection and payment

A unified information management system that enables online registration, tax returns and payment of taxes, duties and rates.

The Kampala Capital City Authority (KCCA) launched the E-Citie programme in 2014 to improve efficiency of tax collection, increase the weight of local taxation in the operating income and thereby limit dependence on transfers from central government.

Several types of payment system have been introduced: windows, points of sale, banks, mobile phones or computers.

The system was first tested in the transport sector (road user taxes and taxi operation fees) and will be adapted to other revenue flows (hotel taxes, commercial licences, real estate taxes). It enabled the identification and centralisation of the tax payers base in a municipal register, which facilitates monitoring and improves the collection of taxes and refunds (SMS reminders of deadlines, confirmation of payments).

Between 2011 and 2016, the KCCA experienced a 266% increase in its tax receipts. Total revenue collected through mobile payment reached 12.8% of revenue collected.

Lessons learnt

  • Using simple digital tools for tax collection represents a very profitable investment for local authorities.
  • Tax collection was introduced in stages, in the first instance limiting the use of digital tools to a specific domain.

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