Government has passed new levies to be paid by passenger taxis and buses following a resolution by a Cabinet meeting chaired by President Yoweri Museveni on Monday.
According to the new levies, each taxi plying routes between Kampala and other towns will have to pay Shs 840,000 per year. This money once collected will be shared between KCCA (60%) and the other authorities.
For taxis that operate in the countryside (outside Kampala), government has put a levy of Shs 840,000 to be shared between the local government of origin (60%) and the taxi’s destination.
Commuter taxis operating within Kampala will be required to pay Shs 720,000 each year while the levy for buses (coaches) has been put at Shs 2.4 million, also to be shared equally among all the urban authorities along the route.
Uganda has a total of 34,000 taxis and 960 buses in total.
While making the announcement to the press on Tuesday, the State Minister for Local Government, Jennifer Namuyangu said that the Cabinet decision seeks to harmonize the tax system of Kampala Capital City Authority (KCCA) and other Local Governments.
This will also stop multiple taxation and daily levies on taxis and provide for a single annual payment, she said.
“There will be no more multiple charges. The taxi operator will have to choose a route chart – where they want to operate. And this can not be changed until the year expires,” Minister Namuyanja said.
“We have also done away with the agents and tenderers. Local governments used to contract these services to agents. This will no longer work. Money will be paid directly yo the URA account and then sent back to local governments,” she said.
The new levies have also scrapped all the other fees like welfare fees, stage management fees and loading fees which drivers have decried for long.
Minister Namuyanja said that the levies passed were agreed upon following comprehensive consultations between President Yoweri Museveni, passenger service vehicle owners, drivers and conductors.
The Ministry of Finance estimates that up to Shs 26.4 billion will be collected annually from these levies.
KCCA will embark on a sensitization of the stakeholders in public transport on the new guidelines and what is expected of them. In addition, they will gazette stages and parks within Kampala, said the Minister.
