Busia Senator Okiya Omtatah has claimed that the government is planning to introduce a yearly tax on motor vehicles.
In a statement shared on Thursday, May 2, the vocal lawmaker alleged that the proposal to tax motor vehicle owners is contained in Finance Bill 2024.
Omtatah claimed that the Bill seeks to impose a yearly tax of 5 per cent on the value of the car.
"The Finance Bill, 2024 proposes to introduce The Motor Vehicle Tax. If enacted the tax will be 5% on the value of the car to be deducted each year by the insurance company, " Omtatah wrote on his X account.
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Omtatah further shared a piece of the said Bill which indicated that the value of the car will be determined by its model, engine capacity and year of manufacture.
The Finance Bill, 2024 proposes to introduce The Motor Vehicle Tax.
— Okiya Omtatah Okoiti (@OkiyaOmtatah) May 2, 2024
If enacted the tax will be 5% on the value of the car to be deducted each year by the insurance company. pic.twitter.com/T8nqiqlBrN
The document which Omtatah referred to also alleged that the vehicle tax shall be payable to the Commissioner on each motor vehicle at the time of the issuance of an insurance cover.
It added that an insurer of the motor vehicles shall collect and remit motor vehicle tax within five working days after issuing a motor vehicle insurance cover.
Further, it proposes a heavy penalty for failing to collect the said tax.
However, by the time of this publication, Omtatah had not clarified the origin of the said document proposing the new taxes.
The government had also not issued or announced any plans to tax motor vehicles as alleged by the Senator.
