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Arua, Uganda | THE INDEPENDENT | Arua Central Division Council has proposed to levy an annual fee of 12,000 Shillings on Boda Boda operators. This is part of the local revenue enhancement measures for the next financial year.
The new tax proposal is contained in the draft budget estimates of revenue and expenditure for the division for the coming 2023/2024 fiscal year. Under the proposal, each Boda Boda cyclist is expected to pay 1,000 Shillings per month as tax to the urban authority.
While presenting the draft budget estimates for the coming financial year on Thursday, Hamid Salim Mugisha, the Arua Central Division Secretary for Finance explained that the proposed Boda Boda tax is one of the new local revenue sources that the council identified.
According to Salim, they consulted and sensitized the Boda Boda operators in the division before tabling the proposal which is pending council approval.
The development comes when Arua central division is struggling to realize its target for local revenue collection. For instance, in the six months of the current ending financial year 2022/2023, the division managed to collect 983 Million Shillings out of the estimated collection of 3.67 billion Shillings.
Elmahad Salim Mawa, the Chairperson of Arua City Boda Boda Association says that the proposed tax on Boda Boda has been presented too soon especially when they have not fully organized the Boda Boda industry in the central division.
Malik Drakuma, the Arua Central Division Town Clerk challenged the local leaders in the division to support local revenue mobilization efforts.
Other new tax proposals include a levy of 24,000 Shillings annually on tricycles commonly known as Tuku tuku.
Records at the Arua City Boda Boda association indicate that there are an estimated 5,000 Boda Boda motorists operating from 139 stages.
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