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The new tax proposal is indicated in the draft budget which estimates revenue and expenditure for the division in the coming fiscal year 2023/24. Each Boda Boda cyclist will pay Shs1,000 per month in tax to the urban authority.
The Arua Central Division Secretary for Finance Hamid Salim Mugisha explained on Thursday 6, April, 2023 that the proposed tax is one of the new sources of local revenue that the council identified.
Mugisha said they consulted and sensitised Boda Boda operators in the division before tabling the proposal.
As the proposal awaits council approval, Boda Boda leadership has expressed discontent with the proposal, especially during this period.
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Elmahad Salim Mawa, the Chairperson of the Arua City Boda Boda Association said the proposed tax on Boda Boda businesses has come too soon and that they need time to prepare. He added that they have not fully organised the industry in the central division to absorb this tax.
The tax development comes at a time when Arua Central Division is buckling under pressure to realise its target for local revenue collection. For the fiscal year 2022/23, the division collected Shs983 million out of the target of Shs3.67 billion.
The Arua Central Division Town Clerk Malik Drakuma challenged local leaders in the division to support local revenue mobilization efforts.
The draft also includes a proposal to levy Shs24,000 annually on tricycles popularly known as Tuku Tukus.
According to the Arua City Boda Boda Association, there are an estimated 5,000 Boda Boda motorists operating from 139 stages.