The Local Government Finances Act

1. SERVICES, MATTERS OR ACTS IN RESPECT OF WHICH A LOCAL GOVERNMENT AUTHORITY MAY IMPOSE RATES, CHARGES, LEVIES, FEES OR DUES Produce Cess on buyers: (a) Crop cess – cap 3% of farm gate price on cash crops (b) Crop cess- cap 3% of farm gate price on food crops (c) Forest produce cess – cap 5% of farm gate price or by volume at source on sales of timber, charcoal, logs, mirunda, firewood, poles and thieses (fito)

2. Charges: (a) Livestock market fee AREAS, SERVICES, MATTERS OR ACTS IN RESPECT OF WHICH A LOCAL GOVERNMENT AUTHORITY SHALL NOT IMPOSE RATES, CHARGES, LEVIES, FEES OR DUES • • • a cess in excess of 3% a cess in excess of 3% cess on sellers cess on timber products e.g furniture and the like • Plying fee for transportation of crops not exceeding 1 ton from one district to another • Livestock outside auction mart • Livestock in auction mart but not yet sold • Livestock not yet sold • Livestock movement permit 56 The Local Government Finance Act [CAP. 290 R.E.2019] • Livestock not in transit • Livestock not transported by train, lorry or ship • Flat rate on all types of solid waste • Animals not slaughtered in an abattoir • Slaughter charge in villages (b) Refuse collection according to categories i.e industrial, commercial, domestic or solid waste (c) Abattoir charges for animals slaughtered in an abattoir: (i) Slaughter charge (ii) Meat inspection charge (iii) Abattoir use charge (d) Cesspit emptying charges where cesspit emptiers belong to the local government authority and the service is rendered by the local government authority (e) Clearing of blocked drains • Charges on private operators undertaking cesspit emptying services • Rates above private operators undertaking cesspit emptying services • Charges on private operators charges undertaking clearing of blocked drains • Rates above private operators undertaking clearing of blocked drains (f) Health facility user charge and • Health facilities not belonging to the cost sharing on health facilities belonging to the local government authority (g) Charges on artificial insemination services undertaken by local government authority staff (h) Clean water service rendered by the local government authority (i) Sale of seedlings produced by the local government authority (j) Livestock dipping service provided by the local government authority (k) Insurance commission charge for services rendered by local • 57 local government authority • Artificial insemination undertaken by non local government authority staff • Clean water service provided by private operators other than local government authority employees • Sale of seedlings produced by a person or body of persons other than local government authority • Dipping services provided by a village council or any person or body of persons other than local government authority Insurance commission services The Local Government Finance Act [CAP. 290 R.E.2019] government authority payable by an insurance company (l) Sale of building plans prepared by local government authority staff

3. Fees for Licences or Permits (a) Building permit (b) Land survey fees (c) Licence fee for commercial fishing (d) Business Licence fee for general merchandising as prescribed under the Business Licensing Act (e) Intoxicating liquor licence fee (f) Muzzle loading guns licence fees (g) Forest produce licence fees cap 20% of the fees (h) Fishing vessel licence fees (i) Advertisement fees for billboards, posters or hoarding (j) Licence fee for building materials including all forms of rock stone, gravel, sand, clay, volcanic ash or cinder, or other minerals being used for the construction of buildings, roads, dams, and aerodromes (k) Taxi registration fee (l) Licensing fee under section 41(1) of the Surface and Marine Transport Regulatory Authority Act,Cap.413 for vehicles which are ordinarily housed or kept within the area of the urban authority (m) Tender fee for procurement activities tendered by the local rendered by a person or body of persons other than a local government authority - - - • Fishing for non commercial purposes or personal domestic consumption • Fees exceeding the prescribed fee • Fee exceeding the prescribed fee - • Fee exceeding cap 20% vide section 79 of the Forest Act – Cap.323 - • Advertisement made pursuant to a requirement prescribed by the law relating to companies • Posters that give direction to areas that provide social services such as schools, dispensary and hospital • Gypsum, limestone being burned for the production of lime, or material used for the manufacture of cement • Vehicles for private use • Vehicles registered outside the urban authority • Vehicles not ordinarily housed or kept within the area of the urban authority • Procurement activities by central Government, a person or body of 58 The Local Government Finance Act [CAP. 290 R.E.2019] government authority (n) Parking fees for parking bays in places other than central bus stand (o) Central bus stand fees for vehicles moving from one destination to the other (p) Hunting licences fees 20% of the money derived from hunting fees charged under the Wildlife Conservation Act, Cap.283 (q) Pharmacies, drug shops, private dispensaries and private clinic registration fees not exceeding 20% of the fees collected under any written law persons other than local government authority • Central bus stand • Stands other than central bus stand • Excess of 20% of hunting fees • Excess of 20% of fees collected • Government Institutions • Religious Organisations (r) Valuation services fee for • Valuation by private valuer • Pharmacies and drug shop establishment fee valuation undertaken on buildings done by local government authority staff • Valuation on public buildings (s) Scaffolding or Hoarding • Fences around completed houses permit fees

4. Levies (a) Service levy charges to corporate entities of cap 0.3% on turn-over, net of VAT and excise duty (b) Property rate on buildings in actual occupation (c) Fish landing or auction levy shall be charged only for facilities provided by the local government authorities • In excess of cap of 0.3% of turnover, net of VAT and excise duty • Non-corporate entities • Structures which are not buildings • Buildings not in actual occupation • Buildings exempted under the Local Government Authorities (Rating) Act,Cap.289 mud houses • Non-commercial fishing • Fish hawking • Fish small retailers 59 The Local Government Finance Act [CAP. 290 R.E.2019] (d) Guest houses (e) Service levy • Fish in auction mart but not sold • Hotels including tourist hotels and camping tents • Guest house charged with hotel levy •

5. Sales, renting and hiring of local government authority assets or products and market dues (a) House rent for local government authority houses • Houses not owned by local government authority (b) (i) Market stalls and slab • Peasants selling agricultural produce dues as prescribed under the Markets Ordinance (Cap.106) (ii) magulio (iii) Auction marts (minada) on an on-and-off basis • Magulio managed by village councils • Small vendors selling cooked food items such as buns, fried fish, and the like (c) Hire or rent for local government authority vehicles, plants and other assets (d) Land rent (shared with Central Government) (e) Bank interest and premium on local government authority monies and shares

6. Fines and Penalties (a) Fines and penalties to be imposed by the Council as stipulated in the by-laws (b) One-half of all fines imposed by, and one-half of the value of all things and articles forfeited as a result of an order of any magistrates court within the area of the local government authority (c) Stray animals penalty - - - - - - ___________________________________ 60