Boda boda registration more than triples motor vehicle licensing
There has been an exponential increase in the number of motorcycles due to their pivotal role in the transport ecosystem. Photo / File
What you need to know:
- URA data indicates that motorcycles were the most licensed automobiles, of which, at least 98 percent were boda boda taxis, followed by motor vehicles and tricycles, respectively
Motorcycle registration more than tripled licenses issued to vehicles in the period ended June 2023, according to data from Uganda Revenue Authority (URA).
URA data contained in the Annual Data Book for the year ended June 23 indicates that motorcycles were the most licensed automobiles, of which, at least 98 percent were boda boda taxis, followed by motor vehicles and tricycles, respectively.
During the period, URA data indicates, at least 161,401 motorcycles were registered, which was, however, a slight decline from the 169,472 units registered in the period ended June 2022.
Motorcycle imports have been growing due to their pivotal role in the transport ecosystem and youth employment.
In the four years to June 2023, imports related to motorcycles, their parts, and accessories, some of which are assembled locally, grew by 57.47 percent.
The same growth was registered in relation to registration numbers, with licensed units growing from 92,758 in June 2020 to 161,401 units.
It is difficult to estimate the number of motorcycles currently licensed, but available data indicates there are more than one million motorcycles on Ugandan roads, of which more than 750,000 are operating within the Kampala Metropolitan Area as boda boda taxis.
During the period under review, URA data indicates that at least 37,856 motor vehicles were registered.
However, this was slightly lower than the 40,993 motor vehicles registered in the financial year ended June 2022 and almost less than half of the 64,059 registered in the period ended June 2021.
Mr Ibrahim Bbosa, the URA assistant commissioner public and corporate affairs, said yesterday the reduction in registration of vehicles resulted from government’s decision to reduce nugatory expenditures, including a decrease in government’s procurement of new vehicles.
“Government has a dedicated strategy to reduce nugatory expenditures, including a decrease in government’s procurement of new vehicles. This reduction may partially explain the decrease,” he said.
Additionally, registration of vehicles could have been impacted by an increase in prices in the last few years due to logistical disruptions, resulting from Covid-19 restrictions and the Russia-Ukraine conflict.
Prices have also been impacted by a ban on importation of vehicles older than 15 years. Station Wagons remain the most licensed motor vehicle with an average of 23,352 units registered annually.
Others are saloon cars with 3,881 licensed annually, light trucks (5,896), pickups (2,067), and vans (1,349).
During the period, URA data indicates that at least 3,625 tricycles, popularly known as tuku tukus, were registered. However, the data doesn’t show previous registration in this regard.
Tuku tukus have become an alternative in transportation of light goods, especially in the Kampala Central Business District.
Motor vehicle sales remain an important tax head, earning government an average of Shs660b in taxable revenue in the four years to June 2023, while related accessories returned revenue earnings of Shs144.1b during the period.
According to URA data, at least 204,231 units of automobiles were registered into the country to the period ended June 2023, which is lower than the 209,825 and 223,256 units registered in the two previous financial years.
