Current Affairs

Govt moves to introduce new annual fees for car owners

According to Min. Kasaija, failure to do so, a person risks a fine of ten currency points for each day he continues to contravene the Act.

Government is, through a new bill seeking to amend the, proposed a new annual fee for all car owners in the country.

In the new Traffic and Road Safety (Amendment) Bill 2021, the Minister of Finance, Planning and Economic Development, Matia Kasaija, also wants the law amended to provide for license fee for possession of a motor vehicle and to repeal the third schedule to the Act and Section one, and the first schedule of the Finance Act, 2006.

In the amendment, the government proposes that a person who owns or possess a car, trailer or engineering plant or uses it on the road, shall be required to pay an annual fee on or before January 31 of every year.

Failure to do so, a person risks a fine of ten currency points for each day he continues to contravene the Act.

It also proposes that a person shall not own or possess a motor vehicle unless the vehicle is licensed.

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The license shall be valid until the government decides to revoke it.

A person who fails to get the license shall either be fined or imprisoned for not more than a year or both.

Government wants the amendment to come into force by July 1, 2021.

This is not the first-time government is introducing an annual fee for vehicle owners.

It was there before under the old Traffic Act but was later removed, with government arguing that it will be taxed through fuel.


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