Taxi operators threaten to strike if buses get fees waiver

Taxi operators have threatened to park their vehicles and suspend services if the government grants a tax waiver to bus operators following a three-day transport strike this week.

The bus operators strike, which again laid bare the country’s urgent need for an organised mass transit system, was called off yesterday after the Ministry of Local Government promised to sit down for talks with the affected parties.

At issue, is the enforcement of a new Shs2.4 million park user fee by Kampala Capital City Authority considered rather high by bus operators.  

Over the past 72 hours, taxis plying long-haul routes to upcountry destinations have made a killing as transport fares rose sharply amidst increased demand.

However, now that the buses are back on the highways as talks go on, a taxi umbrella body said yesterday if the government is to waive levies charged in the transport sector, it should be done for all. It is feared by some that the authorities may again defer payment of park user fees by bus operators.

Mr Rashid Ssekindi, who chairs Uganda Taxi Operators Federation (Utof), said his members have been paying the fees jointly agreed during a 2018 joint meeting held at State House in the presence of the President.

In that meeting, Mr Ssekindi said it was agreed that taxis operating within the same district will pay Shs720,000 to Uganda Revenue Authority (URA) as park user fee annually. For those commuting between districts, the fee was set at Shs840,000. Buses were supposed to pay Shs2.400,000 to KCCA.

“The noncompliance by bus operators to pay park fees is due to their impunity since some of the proprietors are members of Parliament and others are big people within government. They are taking advantage of the situation to default, yet taxis have been paying these taxes as earlier agreed,” Mr Ssekindi said.

He added: “Once they seek an appointment to meet the President and make any adjustments in their park user fees, then we shall have no alternative but to mobilise all taxi owners and drivers to withdraw from the roads with immediate effect”.

Mr Ssekindi proposed that “if any adjustments are to be made, these must be uniform to accommodate even taxis otherwise, taxis will also cease to pay the fees with immediate effect”.
Under a 2020 revision of part of the local government law, it was indicated that omnibus/bus operators shall pay Shs2.4 million in park user fees.

Bus operators are also required to pay an annual fee of Shs2.84 million per bus (Shs 1.5 million for Passenger Service Vehicle licensing and Shs1.34 million as Advance Income Tax to URA). When combined with other costs, including the daily Shs50,000 paid to owners of the private bus terminals, operators say they are being taxed out of business.

Mr Lawrence Ssengendo, the chairperson of the Civil Society Coalition on Transport in Uganda said whaever is decided should ultimately be to the benefit of commuters, especially at this time when children are travelling home for end of term two holidays.

“The regulators have to sit down with all of us to make sure that whatever is provided, it is for the betterment of the wananchi (common person),” Mr Ssengendo said.

KCCA spokesman, Mr Simon Kasyate declined to comment on the threats of strike action by taxi operators, saying he is waiting for the outcome of today’s meeting between bus operators and government.

“I cannot start speaking about a meeting that has not taken place, I will be speculating. So, until that meeting takes place, and the decisions are made in that meeting, then can I comment about the outcomes of the meeting,” he said.

FYI

In 2020, bus operators were asked to pay Shs2.4 million in park user fees and also Shs2.84 million per bus annually.