KAMPALA–In a bid to close the revenue collection gap, Kampala Capital City Authority(KCCA) will tomorrow launch a crackdown on commuter taxis which have not yet paid the Shs120,000 compulsory fees. There is fear that the crackdown will paralyze public transport in and outside the city.
Though the authority managers have remained tight-lipped on the matter, making tomorrow’s operation secretive, sources at the City Hall revealed that most of the owners of the taxis have defaulted paying fees since July.
This followed President Museveni’s directive to all the districts and municipal councils to stop levying double taxation on commuter taxis.
The crackdown on the defaulters, according to a reliable source, will be done at the city borders.
Usually, the operation is conducted by KCCA enforcement team in partnership with the police.
KCCA director of revenue Fred Andema 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.
He argued that the taxi drivers misinterpreted the President’s directive and no longer pay the monthly fees.
In an interview with PML Daily, Local Government minister Col. Tom Butiime said the President’s directive was not to affect the city since it already levying single compulsory fees.
Before his directive, the taxis owners were paying loading, off-loading and road user fees.
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.
Before the Presidential directive, figures from KCCA indicate that the revenue collected from the business had greatly increased.