Passengers In Trouble As Government Imposes New Taxes

Passengers In Trouble As Government Imposes New Taxes

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By Denis Turyahebwa

After a long time, The Cabinet chaired by President Yoweri Museveni on Monday approved the levying and collection of park user fees on Passenger Service Vehicles (PSVs), which is likely to see transporters increase travel fees.

Each taxi will pay Shs840, 000 per annum that will be shared by the original/destination local government and KCCA in the ration of 60: 40 respectively.

According to the State Minister for Local Governments Hon. Jenipher Namuyangu, taxis operating between two urban authorities shall pay a fee of Shs840, 000 which will be shared in the ration of 60:40 percent for original loading and destination local government respectively.

She added that town service taxis exclusively plying within Kampala Capital City shall pay Shs720, 000 annually while bus operators will pay Shs2.4 million which shall be shared equally among urban authorities on the route charts.

Hon. Namuyangu clarified that the purpose of the new developments in transport is intended to harmonise the system between KCCA and other local governments, protecting taxis from multiple taxation and daily levies and also creating room for only one consolidated fee for the taxis on one specific route annually.

However with the new taxes levied on passenger services vehicles, the public expects transport fares to shoot high in an attempt by vehicle owners to compensate these taxes.

Initially Uganda Taxi Operators and Drivers Association (UTODA) was the body responsible for the day to day operation of taxis around Kampala city but these were later kicked out as KCCA resolved to take over taxi operations and management in 2013.

According to an official at KCCA, the new developments in transport by Government are intended to reinstate order in the business and most importantly bring back the revenue that government was losing during days of UTODA.

“KCCA owns the taxi terminals in Kampala; UTODA had claimed to have had a running contract with KCC before we came in. On further scrutiny there was no documentation to confirm these claims so subsequently, court ordered UTODA out and asked KCCA to take over. They were supposed to be remitting Shs 392 million every month but that money was not coming,” He confirmed.

 

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