In an unexpected gathering at their offices in UMA show grounds, the Associated Motor Dealers (AMD) expressed their dissatisfaction with the government’s plan to introduce digital number plates, scheduled to be enforced from July 1st, 2023.
Representing bond owners and various private stakeholders in the transport sector, the AMD voiced their concerns over the lack of consultation prior to the implementation of this new system.
In response to AMD’s grievances, the Ministry of Works and Transport has called for a meeting with the association, slated to take place on June 14th, 2023, at Ssendawula Hall, URA offices at 9:00 am. The purpose of the meeting is to provide a platform for stakeholders to share their opinions on the government’s decision to issue digital number plates for all vehicles and motorcycles in Uganda.
One of the major points of contention for AMD is the cost associated with the new digital number plates. Previously, the price ranged from Shs50,000 to Shs60,000, but with the introduction of dual number plates for motorcyclists, the cost doubled to Shs125,000. AMD members anticipate further price increases with the implementation of digital number plates.
While the government’s intention behind the digital number plates is commendable, concerns about data privacy have emerged among stakeholders. Many are uncertain about how the government plans to utilize the private information collected through these plates, raising questions about unauthorized individual tracking.
As per the proposed regulations, the fee for obtaining a new digital license plate will be Shs735,000 for both motorcycles and vehicles. This substantial cost increase will not only impact the livelihoods of riders in the bodaboda sector, where over 80% rely on loaned motorcycles with high-interest rates, but also result in unemployment for private tracking device companies and asset financing firms.
In response to these challenges, AMD members are contemplating rejecting the regulations and urging the government to reconsider. There are concerns that private digital tracking companies will lose business once the government assumes the role of vehicle surveillance.
During the meeting, the AMD chairman announced that three representatives, one each from motorcycles, vehicles, and e-commerce, will attend the discussions. The lack of involvement of technocrats and consumers during the formulation of the regulations was also raised, highlighting the government’s top-down approach.
The meeting also addressed the contentious issue of the Uganda Revenue Authority’s directive to offer free space to the Joint Stock Company ‘Global Security’ for installing tracking system devices. The allocation of installation costs, particularly at private bond owners’ facilities and motor dealers, sparked a heated debate.
Furthermore, concerns were raised about the process of installing tracking systems in imported motorcycles assembled in Uganda. The designated installation locations also raised issues of asset risk and competition among stakeholders.
Moreover, the time required for installation could negatively impact the sales of the companies involved. This matter received significant attention, emphasizing the need for effective coordination and planning.
Phase two of the vehicle registration functions is scheduled to transition from the Uganda Revenue Authority to the Ministry of Works and Transport in the upcoming financial year, starting from July 1st, 2023. This change aligns with the government’s implementation of an intelligent transport monitoring system (ITMS) aimed at combating vehicle-related crimes. The ITMS will be provided by the joint stock company Global Security.
In conclusion, the impromptu meeting held by the AMD highlights the widespread concerns and discontent among stakeholders regarding the government’s decision to implement digital number plates.