Kampala Capital City Authority (KCCA) has sounded a warning to all business owners who have failed to clear their ground and property rates to ensure that they do so before end of year.

A few business and arcade owners have not honoured this year's annual payments while others have never paid," KCCA public relations officer Peter Kaujju has revealed.

He said that businesses which fail to comply risk closure. In accordance with section 50 of the KCCA act and the local government act, the authority is mandated to collect property and ground rate in respect of specified properties located in Kampala.

Kaujju said that some business owners have responded and have cleared but a lot needs to be done; adding that in the past, revenue has been lost as some traders evaded taxes.

He revealed that the act empowers KCCA to levy, charge, collect and appropriate fees and taxes in accordance with the law. In its 2012/2013, KCCA projected that sh3.4b would be collected from ground rent and sh14b from property.

The authority's sources of revenue include hotel tax trading licences, ground rent and property rates, among others.

Ground rent is payment made annually for all leased plots by Kampala District Land Board on behalf of KCCA. Property rates are dues paid by owners of commercially managed properties in the city.