Bodaboda Operators, Commercial Farmers Targeted to boost Local Government Revenue

[Eronda]

Government is considering a new tax proposal targeting bodaboda riders and commercial farmers as part of efforts to increase local government revenue and strengthen service delivery across the country.

Speaking during a press conference, Hon. Isaac Musumba revealed that discussions are underway to introduce a tax contribution from Uganda's estimated one million bodaboda riders, arguing that the sector generates significant income and should contribute towards local government development.

According to Musumba, the proposed tax is aimed at creating a sustainable source of revenue for local governments, which continue to face financial constraints in delivering essential services to communities.

"The bodaboda sector is a major source of employment and income. Those who earn from this business should also contribute to the development of the areas where they operate," he said.

While confirming the proposal, Musumba noted that authorities are still determining the appropriate amount riders would be required to pay. Details of the proposed levy will be announced at a later stage following consultations and policy discussions.

The proposal is not limited to the transport sector. Musumba also disclosed plans to widen the local revenue base by taxing commercial agricultural producers, including sugarcane farmers, matooke growers, and milk producers.

The move is intended to bring more income-generating sectors into the tax net and reduce local governments' dependence on central government funding.

Supporters of the proposal argue that broadening the tax base could provide districts and municipalities with much-needed funds to improve roads, markets, health facilities, and other public services. However, the proposal is likely to spark debate among stakeholders, particularly farmers and bodaboda operators who may view the new taxes as an additional financial burden amid rising costs of living and doing business.