16 October 2018

Uganda: Govt Cancels Daily Levies On All Public Service Vehicles

Kampala, Uganda — Government has cancelled daily levies on all Public Service Vehicles and ordered a stop to the use of agents in the collection of park user fees from taxi operators.

All PSVs will now make a single annual E-payment of sh720,000 and sh840,000 for taxis, and sh2.4 million for buses, annually.

Minister of State for Local Government Jennifer Namuyangu made the announcement Tuesday. She said cabinet made the decision on Monday October 15, where they approved the levying and collection of Park User fees on Passenger Service Vehicles (PSV).


(i) Each taxi shall pay Ugx.840,000/= per annum to be shared between the origin/destination Local Government and KCCA at a ratio of 40:60 respectively;

(ii) Taxis operating between two Urban Authorities shall pay Ugx.840,000/= per annum which shall be shared in a ratio of 60:40 for origin-loading and destination respectively;

(iii) Commuter taxis in Kampala to pay Ugx.720,000/= per annum; and

(iv) Buses to pay Ugx.2,400,000/= per annum which shall be shared equally among all the Urban Authorities on the Route Charts.

The purpose of the above levy is:

(i) To harmonize the tax system of Kampala Capital City Authority and other Local Governments;

(ii) To stop multiple taxation and daily levies on taxis (Public Service Vehicles) and provide for a single annual payment; and

(iii) To stop the use of Agents in the collection of Park user fees from taxi operators.


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