Uganda Revenue Authority has introduced new procedures for registration of motorcycles in Uganda. The new procedures are seen as a measure to improve regulation of the boda boda business in the country and possibly increase government revenues through taxation.
URA says that with effect from December 21, 2016, all newly registered motorcycles will have to obtain two number plates; one on the front and another at the back. This replaces the old system where motorcycles needed just one plate at the back.
But beyond introducing the two plates, URA’s new registration procedures further distinguish between motorcycles for private use as opposed to those for commercial use (commonly known as boda boda).
“Motor cycles for private use will be issued number plates with black characters against a yellow background,” URA adds: “Motor cycles for commercial (Boda-boda) use will be issued number plates with black characters against a white background.”
Although Kampala Capital City Authority had proposed a tax for boda boda’s in Kampala, the move faced opposition including from the government and died a natural death.
It is not yet clear if the new registration measures are a step before the debate to tax boda bodas is revived. Many however believe that the boda boda cyclists, estimated to be over a million in and around Kampala, should pay tax to contribute towards delivery of social services such as building roads and health services.