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Kampala, Uganda | THE INDEPENDENT | Government has officially cancelled daily levies on all Public Service Vehicles and ordered a stop to the use of agents in the collection of park user fees from taxi operators.
All PSVs will now make a single annual E-payment of sh720,000 and sh840,000 for taxis, and sh2.4 million for buses, annually.
Minister of State for Local Government Jennifer Namuyangu made the announcement Tuesday. She said cabinet made the decision on Monday October 15, where they approved the levying and collection of Park User fees on Passenger Service Vehicles (PSV).
“We are now stopping all collection of monies like stage management fees, loading fees and other charges,” she asserted.
Issues of taxes have been a bone of contention with regular on and off taxi operators’ strikes. KCCA’ decision to raise taxes last year was halted by President Museveni. The president issued a directive that all daily and monthly taxi levies be stopped.
KCCA had raised taxes to sh120,000 monthly at one time.
The decision comes hours after Executive Director Jennifer Musisi handed in her resignation. She had also in July sealed a deal with the Netherlands Ambassador to Uganda Henk Jan Bakker for a grant to the tune of sh4.3 Billion to redevelop Old Taxi Park.
Taxi operators still not happy
Andrew Lule, a taxi operator along Kamwokya Ntinda route, says the new rates are very high, saying they only make money when the taxis are new. He also says the option of monthly payment would have worked better.
The new developments follow a directive from president, Yoweri Museveni for a reduction of operational fees on commuter taxis operating in Kampala from sh1.44 million to sh700,000 andsh500,000 for those plying upcountry routes.
The taxi operators have been operating freely for some time pending the conclusion of consultation between the various stakeholders. There are 34,000 taxis and 960 buses in the country, according to Government.
The failure to collect the taxi operational fees has taken a huge toll on urban councils since taxi parks are their main source of local revenue collection.
CABINET DECISION DETAILS
(i) Each taxi shall pay Ugx.840,000/= per annum to be shared between the origin/destination Local Government and KCCA at a ratio of 40:60 respectively;
(ii) Taxis operating between two Urban Authorities shall pay Ugx.840,000/= per annum which shall be shared in a ratio of 60:40 for origin-loading and destination respectively;
(iii) Commuter taxis in Kampala to pay Ugx.720,000/= per annum; and
(iv) Buses to pay Ugx.2,400,000/= per annum which shall be shared equally among all the Urban Authorities on the Route Charts.
The purpose of the above levy is:
(i) To harmonize the tax system of Kampala Capital City Authority and other Local Governments;
(ii) To stop multiple taxation and daily levies on taxis (Public Service Vehicles) and provide for a single annual payment; and
(iii) To stop the use of Agents in the collection of Park user fees from taxi operators.
