KAMPALA, 5 April 2021 – The Ugandan government is planning to table a bill seeking to levy motorists an average of $55 (Shs200,000) in annual licensing beginning next July 1.
The measure, if approved, would enable the government to raise at least $9.5 million (Shs35bn) annually, according to anonymous sources in the country’s finance ministry, cited Monday by the Daily Monitor newspaper.
Parliament would have to approve the proposal and it would also be at liberty to amend as members of parliament may deem necessary.
The proposed levy will go into the Traffic and Road Safety Act (Amendment) Bill Supplement.
Over the weekend, Ugandan Finance Minister Matia Kasaija declined to comment on the matter, according to the Daily Monitor.
Uganda’s Deputy Secretary to the Treasury Patrick Ocailap admitted being aware of such a proposal but admitted ignorance of ongoing discussions about it within and across government departments.
In the March 24 Traffic and Road Safety Act (Amendment) Bill Supplement, Kasaija indicated that the proposed motor vehicle license “shall be deemed to have come into force on July 1, 2021”.
Uganda has close to one million motor vehicles with annual import stock of at least 5,000 units, according to Uganda Revenue Authority.
Only 5,300km of the 144,785km of the country’s road network is paved, with 96 percent of the entire road network still consisting of gravel or earth surfaced roads.