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Evaluating The Impact Of Local Revenue Generation On The Local Economic Development Of Rural Communities In Uganda: A case Study of Katabi Sub-County in Wakiso District Local Government

This study was limited to examining the impact of local tax generation on the local economic development in
Katabi sub-county. Findings from the study indicate that there are various way through which local economic
development of rural communities in Katabi sub-county in Wakiso district local government for example, Local
revenue is used to fund the local infrastructural development, Local revenue is used to provide medical services,
Local revenue is used to provide agricultural services, Local revenue is used to provide education services, Local
revenue is used to provide utility services such clean water. The study found out that there are various sources of
local revenues in Katabi sub-county such as Local traders pay for licenses as a source of local revenue, there are
user fees for using sub-county properties as land and building, tractors as a source of local revenue, Local
government charge property tax as well as tax on agricultural outputs, market dues. The study also found that
there are various ways of enhancing local tax collection in Katabi sub-county and these included, using public
private partnerships, outsourcing mechanisms or privatization of the revenue collection function, digitalization of
the taxation system, intensified fight against graft and recruiting more qualified and experienced staffs to run the
revenue management system. However, the study also found out that these mechanisms required high political
and administrative commitments to effectively facilitate them which was highly lacking in the division. Sections
of the legal frameworks that are incapacitating should be repelled so as to give the division more considerable
autonomy to collect and spend local resources to meet the local development goals rather than remitting the
collected local revenue to the finance ministry. Government should strengthen the capacity of local governments
to collect local revenues so as to be able to be able to meet the revenue targets annually. This can be done through
organizing capacity building workshops to train civil and political servants to enhance their skills in what they do.
Keywords: Local, Revenue Generation, Economic Development and Rural Communities

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