Parliament’s finance committee has rejected a proposal by the government to introduce a Shs 200,000 annual licence on all motor vehicles and Shs 50,000 for motorbikes.

The ministry of Finance proposed the fees as part of the revenue measures to fund the 2021/2022 budget. If passed, the proposal would come to effect on July 1, 2021. It is embedded in the Traffic and Road Safety Act (Amendment) Bill, 2021 which seeks to impose a license to permit ownership of a motor vehicle, trailer or engineering plant.

However, on Thursday, Henry Musasizi, the chairperson of the finance committee said that they are considering approving only six out of the seven proposed new tax amendments to help the government raise revenue. Musasizi made the revelation after a meeting with the Civil Society Organization (CSOs), Uganda Breweries Limited and Century Bottling Company who were submitting their views on the new revenue proposals.  

He said the plan is also to approve the 30 per cent or Shs 250 tax on locally made alcohol, Shs 70,000 on each kilogram of fish maw and 30 per cent on all rental houses among others.

However, Musasizi said that 12 percent of data will be approved since members of the committee have not protested it. He says that 12 per cent is actually a fair tax and that it can easily be collected. He says that if any challenge arises, they can review the tax after 12 months.

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