Government of Uganda has banned all tax collection agents in taxi parks across the country and instead introduced a new levy that will be paid annually by taxi operators.
Mr Ofwono Opondo the Executive Director Uganda Media Centre and Government Spokesperson said that the decision was reached during a cabinet meeting chaired by President Yoweri Museveni at state house Entebbe.
He said that cabinet approved the levying and collection of User Park on all passenger service vehicles.
In the new structure, each taxi shall pay shillings 840,000/= per annum shared between origin and destination, local government and Kampala city council at a ratio of 40:60.
Also taxis operating between two urban authorities shall pay shillings 840,000/= shared between origin and destination only.
Commuter taxis operating in Kampala will pay a levy of shillings 720,000/= per year.
Government also introduced a new levy of shillings 2,400,000/= annually. The taxes shall be shared equally among all urban authorities on the route charts.
According to government, the move has been done to harmonize the tax system of KCCA and other local government, a development that follows the resignation of Executive Director Jenifer Musisi.
The government spokesman also stated that the new tax system will stop multiple taxation and daily levies on taxis and instead provide a single annual payment.
This investigative website has however established that the new tax structure is slightly lower than the old one.