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Cost of digital car plates to handicap passengers

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Digital number plates. PHOTO/FILE/HANDOUT 

Public transportation costs are projected to rise in the next two years, sector players warned yesterday as the government started installing new digital number plates on all privately-owned motor vehicles.

The ongoing third phase of the implementation of the Intelligent Transport Monitoring System (ITMS) project, which commenced on January 6, will see the government install digital plates on privately owned vehicles and motorcycles. Installation of the same on government automobiles commenced
mid-last year.

Yesterday, the Works ministry said importers of new vehicles and motorcycles will pay Shs714,300 for digital number plates.

Those seeking to replace their old ones will pay Shs150,000 for vehicles and Shs50,000 for motorcy-
cles.

Sector players have consequently described as “unfair”the government’s decision to charge a uniform fee for both private and public car users.

Mr Rashid Ssekindi, the chairperson of the Uganda Taxi Operators Federation, said: “Our vehicles already have old number plates, and we pay annual taxes on them. A more reasonable approach would be to offer a reduced rate for commercial vehicles, rather than charging the same amount as saloon cars that have a single tax payable once a year.”

Mr Dickson Mujuni, the secretary general of the Boda Boda Industry Uganda, said the increased costs associated with the new digitised number plates are a major concern for transport operators.

“For instance, the cost of a new motorcycles has increased significantly, with prices rising from Shs5.5 million to Shs6.5 million, thereby escalating the operational costs of our business that is already struggling to meet numerous expenses,” he said.

The Works minister, Gen Katumba Wamala, in response said laws are not made to discriminate among classes.

The stakeholders, however, unanimously said the increased costs will be transferred to the final passengers.

The government said owners of vehicles with old plates have a two-year window to replace them with their digital counterparts.

“There is no country where laws and regulations are made for different classes of people,” Gen Katumba said, emphasising the government’s stance that the regulations governing digital number plates will be applied uniformly, without exceptions or special treatment for specific groups.

Background
The implementation of the ITMS project by a Russian firm, the Joint Stock Company Global Security (JSCGS) which was rolled out on November 1, 2023, started with government motor vehicles and a total of 2,721 digital plates have been installed. The project has not been without its doubters, though.

This publication reported in August 2023 that the government in 2021 entered into an agreement with JSCGS where the latter would implement the ITMS project to beef up security and fight crimes linked to vehicles and motorcycles.

According to the agreement, the firm is supposed to invest $257m (Shs951 billion) in acquiring and installing Closed Circuit Television (CCTV) cameras, speed radars, smart registration plates, electric tracking devices, backend operations and also establish the plates-producing factory in Uganda.

The government and its partner hope to recoup the investment over a 10-year period. They intend to do this by selling digital plates, with the project expected to bring $974m (Shs3.6 trillion) during that period.

They also intend to charge Shs714,000 to install number plates on a new vehicle. At least Shs150,000 and Shs50,000 will be charged for replacement plates for old vehicles and motorcycles respectively.

Last year, JSCGS set up a facility at Kawempe for the local production of registration plates. It installed four hot stamping machines, and four embossment machines, and will soon receive blank plates and hot stomping materials with security features.

Registration of motor vehicles on ITMS includes booking, verification, and stock control systems.

Getting plates

Fitting the digital number plates is being done in two categories, including new entrants and replacing the old ones.

The first category has the privilege of entering the country with a vehicle fitted with a digital registration plate along with a logbook in hand.

“All one needs to do is to log onto the booking system immediately after your taxes are cleared, and visit the ITMS portal after-tax clearance,” the ministry said.

Mechanics fix the new number plates on one of the government vehicles after their launch at the Ministry of Works headquarters in Kampala on November 1, 2023. Photo | File

Under the second category, vehicle owners will bring in the vehicles to bonded warehouses and thereafter clear taxes.

“After clearing taxes and all assessments are done on the URA portal, including those done by motor vehicle registration of the Ministry of Works and Transport, the client will go to portal ITMS portal and make a booking for the number plate and after confirmation, the client will choose which location and time for fitment of the registration plate,” the minister indicates.

To receive a digital number plate, the applicant is required to log onto the Uganda Revenue Authority (URA) portal using their Tax Identification Number (TIN).

“You will follow the process for transfer of the motor vehicle and there you will find a change to a digital registration plate. An email will be sent to you informing you of the changes and the next step, which will lead you to log onto the ITMS portal for booking, payment, and fitment of the registration plate,”the ministry indicates.

The ministry has designated different car bonds across the country which will handle the fitment of the plates on people’s vehicles.

In Kampala Capital City and surrounding areas, car owners, the ministry says, will go to different bonds including Kampala Modernity, Cadam Enterprises, Banda Bond, Jambo Auto Mart, Yuasa Investments, Jan Kampala, CFAO Motors, Future Investments, and COSMOS, which have been selected as registration Plates Fitment Centres. Upcountry, designated places have been set up in Arua, Gulu, Jinja, Mbale, Masaka, Mbarara, Kabale, and Fort Portal.

These selected centres, the ministry said, will have full-time staff positioned to facilitate registration in the assigned zone and shall ensure that all units are fitted promptly.

Worry
Mr Mujuni expressed reservations over the exercise for boda bodas. He said while they are uncertain of the criteria used to determine the difference in fees for digitising a new motorcycle (Shs714, 300) and exchanging old number plates with new digitized ones (Shs50,000), replacing old number plates will be challenging.

This is because many boda boda owners don't have logbooks under their names. According to the stakeholders, the government through the Works ministry has failed to call for engagements with the transport operators under which they would adequately acquire information on the new system and also listen to their concerns.

“Unfortunately, the Ministry of Works and Transport hasn't engaged with us to provide clarity on the matter, we are primarily relying on media reports. As a result, we are uncertain about most critical information. However, we acknowledge that compliance with the law is crucial, even if it's not entirely agreeable,” Mr Ssekindi said.

“The new system is complex and unfamiliar to us, and there is a lack of guidelines on how to navigate it. This will likely cause some difficulties on our end, and we've already experienced some issues, we're also unclear about the consequences of non-compliance, such as fines and charges. Unfortunately, there was no public communication or stakeholder engagement to address these concerns,” said Mr Mujuni.

The two officials from public transportation sector also raised doubts about the effectiveness of the digitised number plates in reducing crimes. They noted that despite the presence of camer-
as, stolen motorcycles are often not recovered.

“We’ve already experienced cases of stolen motorcycles with digitised number plates, which haven’t been resolved despite the new system. This raises questions about the effectiveness of the system in curbing criminality within the boda boda industry,” said Mr Mujuni.

Optimism
Road safety advocate Sam Bambaza said the new system has the potential to greatly enhance road safety.

“I believe that integrating the transport management system with cameras would greatly enhance road safety, by leveraging digital number plates, the system could effectively enforce speed limits,” he said, adding: “Embracing technology is the way forward in improving road safety.”

Ms Irene Namuyiga, another road safety expert, said the introduction of digitalised number plates is expected to promote greater vigilance in proper road usage.

"The fact that digital number plates are linked to an individual's credentials, such as their national ID or passport, it will encourage taxi operators, for instance, to exercise greater caution when entrusting their vehicles to others,” she said.

GAZETTED CENTRES

Cost of digitised number plates

Digitised plate on new vehicle: Shs714300

Vehicle replacement of old with digitised plate: Shs150,000

Digitised plate on new motorcycle: Shs714,300

Motorcycle replacement of old with digitised plate: Shs50,000

Digitised plates fitment centres

  • Mutukula border
  • Malaba Border
  • Accredited car bonds
  • Kampala Modernity
  • Cadam Enterprises
  • Banda Bond
  • Jambo Auto Mart
  • Yuasa Investments
  • Jan Kampala
  • CFAO Motors
  • Future Investments
  • COSMOS
  • Upcountry districts with designated fitment centres
  • Arua
  • Gulu
  • Jinja
  • Mbale
  • Masaka
  • Mbarara
  • Kabale
  • Fort Portal