By Chris Kiwawulo
THE scrapping of the road licence tax and the introduction of the fuel levy in the 2007/8 budget has provoked mixed reactions from bus drivers and operators in Kampala.

The majority, however, said the passengers will suffer the consequences.

Mzee Muhammed, a driver at the Qualicel Bus Terminal, said: “We have been paying a tax of sh890,000 annually but with the sh80 increase on diesel, it means that a person who drives 500 miles a day and uses 400 litres of diesel, will pay sh32,000 daily as a tax and sh11.5m per year. This is real cheating!”

He said all buses use diesel.

Hajji Hakim Muwonge, the spokesperson for the United Bus Drivers Association, said it was unfortunate that the increase in the fuel tax would disorganise the transport industry.

“Whenever fuel prices are increased, transport fares automatically go up and it is the passengers who suffer.

“I am not happy with the scrapping of the road licence.

“It has been controlling the drivers from committing traffic offences because they could easily be traced,” Muwonge said.

He explained that the transporters and the transport ministry would find a problem to set transport fares.

He disclosed that the transport ministry was a stakeholder in levying transport fares.

Grace Mugizi, a driver with Horizon Coaches Company, said the scrapping of the road licence would cause more harm than good.

“We have not got anything. We shall continue to lose. A bus takes fuel daily and that means we shall be paying taxes every day.

“At the end of the year, we shall pay three times more than what we have been paying,” he complained.

Mugizi also predicted an increase in transport fares, adding: “We are headed for gambling in this business because fuel prices keep on fluctuating.”

Erias Kisitu, a driver on the Kabale route, said increasing the fuel tax would affect them.