The Ugandan government is considering introducing a tax on boda boda operators through local governments to boost revenue collection and generate funds for maintaining public infrastructure. According to Isaac Musumba, Chairperson of the Local Government Finance Commission, the proposal aims to make boda boda operators contribute to the maintenance of infrastructure they use. This move is expected to be discussed at the upcoming Uganda Local Government Own Source Revenue Conference.
Uganda is estimated to have over 1 million boda bodas operating across different local government jurisdictions. These operators contribute to the wear and tear of public infrastructure, increasing the need for maintenance. Musumba emphasized that the proposed tax will be presented at the conference, where local government leaders will discuss and provide their views on the idea. The leaders will determine the proposed tax rate and whether payments should be made daily or monthly.
The Local Government Finance Commission is also exploring ways to expand local revenue sources by targeting commercial agricultural activities, such as sugarcane growing and livestock rearing. The commission aims to consolidate the proposals into amendments to existing laws that will be submitted to Parliament for consideration. Musumba noted that gaps in the current legal framework have limited the ability of local governments to collect certain fees and generate sufficient revenue to support service delivery.
The proposed tax on boda boda operators is part of a broader effort to strengthen the financial capacity of local governments to deliver services and maintain public infrastructure. Musumba disclosed that all payments arising from the proposed revenue measures would be processed through the Integrated Revenue Administration System. This system will help to streamline revenue collection and improve efficiency.
The Uganda Local Government Own Source Revenue Conference, scheduled for the 15th of this month, will play a crucial role in shaping the local revenue mobilization agenda for the 2026/2027 financial year. The conference will bring together local government leaders to discuss the proposal and provide their views. Musumba emphasized the need to consult boda boda associations before the proposal is adopted.
The government aims to address the challenges of maintaining public infrastructure and delivering services at the local level. The proposed tax on boda boda operators is expected to contribute to the government's efforts to enhance revenue collection and improve service delivery. The commission is working to ensure that the proposed revenue measures are implemented in a way that is fair and equitable.
The outcome of the conference will be crucial in determining the future of the proposed tax on boda boda operators. Local government leaders will discuss the proposal and provide their views, which will help to shape the final decision. The government's efforts to enhance revenue collection and improve service delivery are expected to have a positive impact on the lives of Ugandans.
Key points
- The government proposes to introduce a tax on over 1 million boda boda operators in Uganda to enhance revenue collection and maintain public infrastructure.
