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Hundreds lose jobs as govt takes over Jinja Taxi Park

Business goes on in Jinja Taxi Park yesterday. Drivers are happy with the new policy guidelines that require taxis to acquire monthly stickers that cost less than old ones. PHOTO BY TAUSI NAKATO

What you need to know:

  • Relief. Drivers say they will save on the money they have been paying.

Jinja.

A total of 120 people operaing from Jinja Taxi Park have been left jobless following a decision by the central government to have all taxis acquire monthly stickers of Shs80,000 for operation.

This followed the local government revising the policy guidelines on management and levy of parking fees in public vehicle parking areas.

In the new government policy which became effective on July 1, every taxi pays Shs80, 000 for a monthly sticker instead of Shs6,000 the park daily entrance fees.

The executive board secretary of Jinja Taxi Operators, Transporters and Cooperative Society Ltd (JTOA), Mr Epaphras Kibugudho, said the affected people have been working in enforcement, revenue collection, accounts, and receipting.

“We have laid off 120 workers and we have now only one department remaining for traffic wardens that enforce payment of stickers which requires only 10 people and they will be working in conjunction with traffic police,” Mr Kibugudho said.

Less revenue
He said the new policy is affecting the municipality in terms of revenue collection.

“The new policy is equally affecting the municipality and we their agents, we have been paying Jinja Municipal Council Shs76m per month on an average of 600 vehicles after deducting our own percentage but in the new system the money has reduced to Shs48m and they have to deduct our 25 per cent which is roughly Shs12m,” Mr Kibugudho said.

He said they have been spending close to Shs30m in operation costs every month as JTOA including fuel for patrol vehicles, daily allowances for staff but the Shs12m cannot sustain the operation of the office.
He disclosed that they are also compiling the list of all owners and drivers of vehicles that operate in the area which they will hand over it to Jinja Municipal council.

The Jinja Town clerk, Mr Francis Byabagambi, said tax revenue is likely to reduce because taxis have been one of their major sources of income.

“We have been collecting Shs6.7b every month as local tax revenue and Jinja Taxi parker has been one of our major source of income, now the revenue is likely to reduce after the implementation of the revised policy hence poor service delivery,” Mr Byabagambi said.

The new policy comes after drivers complained to President Museveni about multiplicity of charges by local governments, persistent disputes, conflicts and public outcry and allowing of private individuals and other entities to collect and have custody of the monies.

Drivers upbeat
Mr Mansoor Wassajja, a driver plying the Jinja-Kampala highway, said the new policy will increase his savings because he has been spending Shs180,000 monthly compared to Shs80, 000 he is supposed to pay according to the new policy.

“I am going to save Shs100, 000 and I will be able to pay school fees for my children unlike before where I was spending Shs180,000 every month only on taxes yet I also have other responsibilities,” Mr Wassajja said.
Mr Bashiri Mabanjja, a driver on the Jinja-Mbale Highway, said he supports the policy because he has been paying the money with no accountability from the association and council.

“Let government takes over Taxi Park and we will benefit through the construction of roads. Jinja Municipal council and our association have never showed us the accountability. When you ask, they tell you the money is being used on garbage collection and street lighting,’’ he said.