Masindi boda boda riders reject proposed motorcycle tax
“About 85% of boda boda riders in the district operate motorcycles acquired through loans, and many are struggling to meet their repayment obligations,” Kato says.
Masindi: Boda boda riders in Masindi District have rejected a proposed tax on motorcycle operators, warning that the move could worsen their financial hardships, reduce their earnings and make it more difficult for them to support their families.
The riders, operating under the Masindi Motorcycle Operators Association (MAMOA), say they are already struggling with rising fuel prices, expensive spare parts, insurance costs and motorcycle loan repayments.
The opposition follows a proposal by Isaac Musumba, the Chairperson of the Local Government Finance Commission, to introduce taxes on boda boda operators and commercial farmers as part of efforts to expand local governments’ revenue base.
Musumba says consultations with stakeholders will be held this week to discuss how the proposed tax would be collected and the amount each operator would be required to pay.
James Kato, a boda boda rider at Rotary Stage in Masindi Town, says many operators are struggling to repay loans used to acquire their motorcycles.
“About 85% of boda boda riders in the district operate motorcycles acquired through loans, and many are struggling to meet their repayment obligations,” Kato says.
Denis Busobozi, a rider at Centenary Stage, argues that operators already contribute to government revenue through taxes imposed on fuel, engine oil and motorcycle spare parts.
He says the government should review the existing tax burden before introducing additional levies on the operators.
Busobozi says imposing another tax would increase the cost of doing business and further strain riders who are already struggling to make ends meet.
Rogers Alinaitwe, a rider at Barkerm Stage, says the high cost of fuel, engine oil, tyres and inner tubes leaves operators with limited earnings to meet their daily needs.
He warns that an additional tax would further reduce their profits and make it harder for them to provide for their families.
Jonan Wobusobozi, the MAMOA Chairperson, has appealed to local leaders in Masindi to oppose the proposed tax and engage the government to ensure it is dropped.
Wobusobozi says many riders are struggling to repay motorcycle loans while meeting other expenses, including the cost of digital number plates.
He argues that additional taxation would make it more difficult for operators to provide basic necessities for their families and pay school fees for their children.
The association wants local leaders to present the concerns of riders to the relevant authorities before any decision is made on the proposed levy.
According to the operators, motorcycles licensed to carry one passenger pay an annual fee of 20,000 shillings to the Uganda Revenue Authority.
They also cite the Excise Duty Amendment Act, which increased excise duty on the first registration of motorcycles from 200,000 to 500,000 shillings. Combined with stamp duty of 50,000 shillings, the initial registration cost amounts to 550,000 shillings.
The riders say these existing costs should be considered before the government introduces any additional tax on motorcycle operators.
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