By Damali Mukhaye
MPs sitting on the finance committee have opposed the proposed new annual tax on all motor vehicles arguing that the government imposed a tax on fuel so it is not in order to impose another.
Appearing before the committee this morning to defend the new tax proposal that was tabled before parliament last week, the state minister finance in charge of planning David Bahati said all motorists will be required to pay an annual direct tax of Shs 200,000.
He said this is intended to prevent road carnage because only road-worthy vehicles will be on the road and also raise some money for the treasury, a move that the committee has vehemently opposed.
Nandala Mafabi, one of the committee members says this tax will increase corruption on the roads and force many Ugandans to park their cars for years.
He says that government should instead impose a tax on fuel as opposed to vehicles.
