The money accumulated out of the failure by road users to pay dues while hiding under a July 22 presidential directive on the harmonization of taxes in the informal sector.
Subsequently, the minister for Local Government Tom Butime issued a directive indicating that all taxis operating within Kampala would pay a monthly rate of 120,000 Shillings.
Butime advised that commercial road users continue paying their obligations under the current arrangement while a mechanism of harmonization of the various fees is reviewed.
Fred Andema, the Acting Director of Revenue Collection at KCCA said that as a result, a shortfall of Shs 4 billion was recorded in the first quarter of the financial year 2017/2018.
Now KCCA says they have a grace period of one week to clear their outstanding dues or face enforced recovery.
But Mustafa Mayambala, the chairperson of Uganda Transport and Development Agency (UTDA) scoffed at KCCA saying the ultimatum is meaningless and in contradiction of the presidential directive.
“We have been following KCCA. They always make contradicting orders, if it means having talks with the authority we will talk if it means fighting we will fight, but we will not pay the fees, the president’s letter was clear to us,” Mayambala said.
