Uganda’s Ministry of Finance has dropped the proposal to charge a 200,000 shillings annual license fee on all vehicles and 50,000 shillings on motorcycles which were expected to generate 20 billion shillings for the national coffers.
Last month, it was revealed that under the Traffic and Road Safety Act, 2020, government will require all motor vehicle owners, including private cars, to pay an annual license, whose fee was not determined.
The amendment proposed by Minister of Finance Matia Kasaijja intended to amend section 14 of the ACT to make it criminal for anyone to own a motor vehicle that is not licenced.
“A person shall not own or possess a motor vehicle, trailer or engineering plant or use it on the road unless the motor vehicle, trailer or engineering plant is licenced under this Act,” the amendment suggests.
According to the Act, the licences will be obtained by application to the Chief Licencing Officer of government and such licence shall be valid until revoked.
However, in the latest development, the ministry has decided to drop the proposal that drew public animosity.
Ugandans already pay an annual third-party insurance fee on each motor vehicle owned.
The amendments also suggested an introduction of annual licence fees per vehicle to be borne by the car owners.
“A person who possesses a motor vehicle, trailer or engineering plant or uses it on the road, shall pay an annual fee on or before the 31st day of January of every year as may be prescribed by the minister of regulations,” the amendment suggests.