June 14, 2013

CDF Katumba Voices Support For ‘Boda boda’ Tax

The Chief of Defence Forces General Katumba Wamala says the increase on motorcycle registration fees will bring sanity to the youth who were selling off land in their villages to enter the business.

Finance Minister Maria Kiwanuka read the 2013/2014 budget on Thursday with an increase on motorcycle registration fees by shillings 70,000 from 130,000 to 200,000 and vehicle registration fee by 200,000 shillings.

These two additional measures introduced are likely to generate over 16 billion shillings, according to Kiwanuka.

General Katumba, who once mobilised boda boda cyclists while he served as Inspector General of Police, says that the boda bodas cannot be ridden for over ten years, adding that if it is put in the direction of controlling the youth then it is a good idea.

The increase of the registration fees came as additional revenue measures proposed by the presidential budget advisory committee together with others like the additional 50 shillings levy on petrol and diesel, the international calls levy, reinstated VAT on supply of water for domestic use and others which will source government 383bn.

This additional increment on vehicle and motorcycle registration has received mixed feelings, the minister for Energy Irene Muloni said that this increment is just a one off whereby it will be paid at once when a vehicle or motorcycle is purchased therefore it will not affect the people that much.

She added that since the budget was to be mainly funded by the country, such additional innovations were required.

Over 80% of this financial year budget is funded by internally generated which the Finance Minister called historical and attributed this to the private sector for its tremendous support and contribution.

Kiwanuka pledged that the resources in the budget will be utilized efficiently on investment rather than consumption.

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