Investors owning property in Kampala have decried an occupational permit tax levied on tenants renting commercial properties in Kampala saying it fosters failure of business.
Previously,an occupational permit was a requirement for property owners to certify that the construction of a building is in compliance with the applicable laws and rules and indicating it to be in a condition suitable for occupancy.
However, Kampala Capital City Authority KCCA has extended the service of applying for occupational permits to tenants seeking to rent out premises, in addition to trading licences..
Charles Odele, a lawyer speaking on behalf of the landlord, Chestnut Uganda Limited, the proprietors of the Arena Mall, Kampala’s latest iconic shopping destination says tenants are choking on the various taxes hence the failure of many businesses. lead to higher rent hence failure of many business
“This law doesn’t help at all,because a tenant has to part with a trading licence,occupational permit and URA is also there,so most tenants are ready but hold back because of the occupational permit,it delays business because sometimes a tenant rents a building for one month but cannot operate because of that permit.”Odere said
Odele was speaking at the opening of the 140 billion shillings structure that sits on 13,800 square miles in Nsambya.
Odere said “we are pleased to bring this high-quality retail mall to Kampala and look forward to welcoming both local and international premier retail brands and together with our tenants make shopping a convenient and pleasurable
The mall in its first phase has a tenant mix set to feature retail showrooms, a supermarket, coffee shops, pop up markets, a state-of-the-art cinema, food court terrace, restaurants, banks, and general stores,
The Arena Mall is set to offer an unparalleled shopping, dining, and entertainment experience to the fast-growing population of some of Kampala’s most affluent neighbourhoods that include Bunga, Munyonyo
According to Marc du Toit the Head of Retail at Knight Frank, “The Arena Mall will in the course of next year change the face of shopping in Kampala with an eclectic mix of international and national retailers. The southern part of Kampala will never be the same.”
The Arena Mall is the first green-rated building in Uganda by the Green Building Council South Africa, now standing tall as the only 4 star rated green building in Uganda.
