Government to Change Annual License Fees for Motor Vehicles

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Government through the Ministry of Finance, Planning and Economic Development (MoFPED) is planning to levy a yet to be determined annual license fee on every motor-vehicle operated in the country.

Finance Minister Matia Kasaija says government is introducing the Traffic and Road Safety Act (Amendment) Bill 2021, where they seek to amend the Traffic and Road Safety Act Cap, 361, so that whoever possess a motor-vehicle is licensed and also “Introduce an annual licence fee for all motor vehicles,”

Part three (03) of the current; Road and Safety Act, 1998, Cap 361 empowers the government through the Ministry of Works and Transport, to register and licence all motor-vehicles but does not provide for any fee.

The Act categorizes motor-vehicles as; heavy goods vehicles, heavy omnibuses, heavy tractors, medium goods vehicles, medium omnibuses, light goods vehicles, light omnibus, tractors, motorcars and dual-purpose vehicles excluding light goods vehicles.

Passenger vehicles, including light, medium and heavy omnibuses having seating accommodation not exceeding 28 passengers will pay Shs1.2m, according to the Finance Act.

Sedan, Estate and Saloon cars without dual purpose passenger vehicles will also pay Shs1.2m, Estates and Station Wagons with an engine capacity of 3500cc will pay Shs1.7m, ambulances Shs300,000, Hearses Shs800,000 while Agricultural tractors were to pay Shs250,000.

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