By Bazio Doreen.

For a trader operating in Adjumani Town Council, paying local taxes comes with an expectation that the money will translate into cleaner streets, better public infrastructure, improved services and a more functional local government.

But when garbage collection is irregular, public infrastructure remains inadequate and essential services fall short of expectations, residents may begin questioning what they are getting in return for their contributions.

This relationship between taxation and service delivery took centre stage during a fiscal decentralization and Integrated Revenue Administration System (IRAS) training organized by the Local Government Finance Commission (LGFC) at Adjumani District Headquarters.

The Commission challenged political and technical leaders to address weaknesses in revenue mobilization, eliminate collection leakages and strengthen accountability for public resources amid concerns over the district’s failure to meet its own-source revenue targets.

The engagement brought together heads of departments, newly elected Local Council III chairpersons, Sub-County Assistant Chief Administrative Officers (SACAOs), Account Assistants and members of the District Executive Committee.

Discussions exposed a significant gap between the district’s revenue ambitions and actual collections, raising questions about whether Adjumani is fully exploiting its available revenue sources and whether existing collection systems are delivering the expected results.

Revenue collections remain below expectations

Figures presented during the training show that although Adjumani’s local revenue collections have increased in absolute terms over the past three financial years, the district continues to fall short of its annual targets.

In FY 2023/2024, the district collected UGX 412 million against a target of UGX 2.04 billion, representing 20 per cent performance.

Collections improved to UGX 1.018 billion in FY 2024/2025 against a target of UGX 2.07 billion, translating into 49 per cent performance.

However, in FY 2025/2026, the district collected UGX 1.082 billion against a target of UGX 2.64 billion, representing 41 per cent.

For FY 2026/2027, the district is targeting UGX 2.64 billion, although first-quarter collections stood at just UGX 65.86 million.

The figures point to a revenue administration challenge that goes beyond setting ambitious targets. They raise questions about the identification of taxable economic activities, the efficiency of collection mechanisms, enforcement and the capacity of revenue officers to monitor potential revenue sources.

Unzia Martine, Chairperson of the LGFC, said Adjumani was added to the Commission’s support supervision programme because of its relatively low revenue performance despite having been engaged three times previously to review its local revenue mobilization.

She argued that the district should be collecting more revenue than some local governments with smaller revenue bases.

However, her concern was not limited to the amount collected. She questioned whether residents could identify the services supported by their tax contributions.

“Do taxpayers, especially in Town Council, feel value for the money they pay? Do they get adequate access to electricity? Is their garbage collected on time? These are things that can motivate people to pay taxes on time,” Martine said.

Her remarks highlighted an important relationship between local taxation and public trust: residents are more likely to comply with their tax obligations when they can see how their contributions improve their communities.

Martine also observed that political leaders establish a social contract with the public through their election manifestos and must therefore be accountable for translating their promises into tangible services.

She revealed that political leaders would be incorporated into IRAS performance monitoring to reinforce their oversight responsibilities in local revenue administration.

Revenue leakages and inadequate facilitation.

Fred Andema, Senior Manager for Revenue and Research at the LGFC, identified weaknesses in the district’s revenue collection structures as some of the factors that could be contributing to poor performance.

He observed that Adjumani may not have exhausted its available revenue base, suggesting that the district needs to identify untapped sources and improve the administration of existing ones.

One of the concerns he raised was the inadequate facilitation of Parish Chiefs, who play an important role in revenue mobilization at the local level.

According to Andema, failure to provide these officers with the necessary resources and motivation can create opportunities for revenue leakages and weaken collection efforts.

“We need to also motivate the people collecting this local revenue. Parish Chiefs should be facilitated and motivated. At least 10 per cent of revenues collected should be allocated for this purpose,” he said.

He further challenged the district to move beyond preparing annual revenue enhancement plans as routine administrative requirements, urging officials to implement, monitor and periodically review them.

Andema also called for the revival of property tax collection through the functionalization of the district’s property valuation board, whose previous term expired in FY 2023/2024.

The Commission recommended a broader revenue improvement approach centered on assessing revenue potential, expanding the tax base, reducing leakages, improving compliance, enforcing taxes fairly and making realistic forecasts.

These proposals raise important questions about the district’s capacity to translate existing revenue opportunities into actual collections and whether the officers responsible for mobilization have the necessary resources to do their work.

Leaders challenged to lead by example.

The responsibility for improving local revenue performance also drew attention from district political and technical leaders.

Hon. AA Rokani Moses Simba, District Speaker, called for collective responsibility and equal enforcement of revenue obligations, warning against allowing personal relationships to interfere with revenue assessment and collection.

“Do not say this is my brother and so I can’t assess him for the local revenue payment. We need to work together to improve our district’s financial capacity,” he said.

Simba urged political leaders and revenue officers to spend more time in communities identifying revenue opportunities and following up on collections instead of relying heavily on meetings.

His remarks highlighted the need for fairness and consistency in enforcing local revenue obligations, particularly where personal relationships and political influence could undermine compliance.

Leku Samuel, Chief Finance Officer, acknowledged operational challenges affecting revenue administration, particularly delays in remittances to lower local governments.

He attributed some of these delays to bureaucratic approval processes involving different stakeholders.

He also revealed that government plans to establish a dedicated department for revenue collection, although further details about its structure and implementation were not provided during the engagement.

Leku urged district stakeholders to embrace technology and strengthen collaboration in improving the use of IRAS.

“We need to appreciate technology and help others to improve our IRAS performance. I urge those directly involved in revenue mobilization to use resourceful persons amongst us,” he said.

Ocen James Andrew, Chief Administrative Officer, expressed optimism that the district would register improved performance during the current financial year.

He attributed part of his optimism to the arrival of a new Deputy Chief Administrative Officer from Oyam District, which he observed had been performing better than Adjumani.

Will the recommendations translate into results?

One of the key resolutions from the training was the establishment of a district task force to monitor local revenue performance and strengthen accountability among the different stakeholders involved in revenue administration.

The task force is expected to track collections, identify operational challenges and follow up on the implementation of agreed revenue enhancement measures.

The training also emphasized the use of IRAS dashboard reports as tools for monitoring revenue performance, identifying collection gaps and strengthening political and technical oversight.

The Local Government Finance Commission is a constitutional body established under Article 194 of the Constitution of Uganda, mandated to advise government on matters concerning the financing of local governments.

For Adjumani, however, the real test will be whether the recommendations translate into measurable improvements.

The district must demonstrate that it can identify and exploit available revenue sources, address weaknesses in collection systems, adequately facilitate revenue officers and ensure that enforcement is fair and transparent. Equally important is accountability for the money collected.

When residents pay taxes but cannot see improvements in waste management, local infrastructure and other essential services, confidence in the revenue system can weaken. Conversely, visible improvements in service delivery can strengthen public willingness to comply with tax obligations.

The proposed district task force therefore faces a responsibility that goes beyond tracking figures on an IRAS dashboard. It must help establish a revenue system that is efficient, transparent and responsive to taxpayers’ needs.

Ultimately, Adjumani’s success will not simply be determined by whether it reaches its UGX 2.64 billion target. It will also depend on whether residents can point to meaningful improvements in their communities and confidently say that the money they pay is making a difference.

END.