VT18M REVENUE LOSS FOR SHEFA COUNCIL

The SHEFA Provincial Government Council (SPGC) incurred a huge revenue loss of approximately Vt18 million in 2020.

The shortfall was the result of a government decision last year to waive business licence fees due to the COVID-19 pandemic.

SPGC Secretary General, Mr. Morris Kaloran said business licences account for Vt14 million, while other licences account for the other Vt4 million.

Kaloran confirmed the revenue loss is greatly affecting the services delivery provided by the council.

The SG made reference to poor road conditions in areas within the Shefa council jurisdiction which required urgent attention. 

The council cannot assist the Shefa Public Works by subsidising the costs.  

Revenue collected from the business licenses could be managed by Shefa council to subsidise costs, for instance, pay for fuel for machines that Shefa Public Works could use towards road maintenance.

However, currently, according to the SG, the machines belonging to Shefa Public Works which is under Public Works are not operational. The Shefa Council had to tap into the private contractors, but, their services are too costly for the council to use.

Kaloran said the government have not revoked their decision but, Shefa council had resumed payments of Business licenses, which is also one of their main generating revenue avenues.

SG Kaloran is informing all business houses within the SPGC jurisdiction to pay their business licences by March this year.

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