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How Museveni directive on taxi fees made KCCA lose Shs4b

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Taxi operators parked their vehicles in protest of the multiple taxes levied on them prompting President Museveni to issue a directive stopping the multiple taxes. PML Daily photo.



KAMPALA–In July this year, President Yoweri Museveni directed districts and municipal councils to stop levying double taxation on commuter taxis.

Kampala City Council Authority (KCCA) director of revenue Fred Andama said the President’s directive has made the authority lose about Shs4b in revenue in the last three months, something he said has greatly affected service delivery.

Before his directive, the taxis owners were paying loading, off-loading and road user fees.

The President’s message was welcomed by taxi drivers and commuters, making it difficult for government agencies like Kampala Capital City Authority(KCCA) to raise local revenue out of the business.

In 2012, after disbanding the defunct UTODA, KCCA took over the management of the taxis in the city, introducing a compulsory fee of Shs120,000.

Andama said the commercial road users, most especially taxi drivers, misinterpreted the President’s directive and nolonger pay the monthly fees.

At every beginning of the month, KCCA impounds commuter that have not complied with the taxi requirements. Before the Presidential directive, figures from KCCA indicate that the revenue collected from the business had greatly increased.

However, some taxi drivers like Robert Kironde said KCCA enforcement team brutalities them in the process of collecting the fees.

“We are beaten at times and sometimes arrested for failure to pay the fees, which I think it’s wrong,” Kironde said.
The President also wrote to the Prime Minister, Dr. RukahanaRugunda, directing all the agencies to stop over taxing the informal sector. He wants them to pay annual license but not daily dues.

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