Mbale City authorities have closed Le Cottage Hotel along Masaba Road in the Industrial City Division over failure to pay hotel tax.
Several other establishments, including Elgon Heights Hotel and Wimpy Hotel, were also shut down on Friday tax arrears.
Officials said a number of hotels have defaulted on their tax obligations for an extended period, prompting enforcement action.
They added that several other businesses across the city have similarly been closed over outstanding tax liabilities.
Authorities warned that tax evasion attracts serious consequences, including business closure, heavy penalties, legal action, and possible prosecution.


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