Local Govt Finance Commission seeks law reforms to
The Local Government Finance Commission in Uganda is seeking legislative reforms to increase revenue collection, including taxing the boda-boda (motorcycle taxi) sector. The proposal faces pushback from rider unions who argue they are already overtaxed and lack proper consultation.
Why it matters
It highlights the tension between government fiscal needs and the economic survival of informal sector workers in developing economies.
The Local Government Finance Commission has asked Parliament to amend laws that restrict local governments from collecting revenue, including taxes from boda-boda operators.
Commission chairperson Isaac Musumba said Uganda has more than one million boda-boda riders and that taxing the sector more could boost local government revenue.
Already, operators and owners face direct and indirect taxes, registration fees, and levies across national and local frameworks.
Frank Mawejje, the chairperson of the United Boda Boda Riders Co-operative Union and the interim KCCA boda-boda leadership, said they should have been consulted before proposing additional taxes.
Mawejje said the union has 1.3 million members who already pay taxes he estimates generate around sh6.8 billion daily. He also pointed to fuel taxes, saying riders contribute around sh1,750 per litre in taxes to the government.
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