KAMPALA, Parliament has launched an inquiry into Uganda’s digital number plate project amid claims that the government could be losing more than Shs106 billion in tax revenue.
The investigation is being conducted by the Parliamentary Committee on Infrastructure, which says it has encountered major discrepancies between information provided by the Ministry of Works and Transport and figures submitted by the company implementing the Intelligent Transport Monitoring System (ITMS).
The committee is seeking clarification on the project’s production capacity, number plate imports, revenue collections and the financial arrangements governing the system.
Committee chairperson Mwine Mpaka said figures submitted by the Ministry indicate that government could be losing approximately Shs4 billion in tax revenue every week, at a time when the number of digital plates being issued has reportedly dropped from about 350 to as low as 100.
The figures, he said, are inconsistent with the contractor’s reported capacity of producing and installing approximately 1,500 digital number plates a day.
Mpaka said the conflicting submissions have prompted the committee to demand detailed records from the relevant government agencies and the project implementers to establish the actual scale of production, imports and revenue generated.
The committee is also examining claims that the digital number plate project generates more than Shs1 billion a day, with concerns that part of the money could be flowing out of the country.
Mpaka said the figure was derived from the reported cost of about Shs714,000 for a digital number plate and the contractor’s claimed capacity of 1,500 installations per day.
He cautioned, however, that Parliament had not yet independently verified the calculation.
The committee has consequently requested importation records to determine the quantities of digital number plates and raw materials entering Uganda and establish whether the imports correspond with the production and installation figures being reported by the contractor.
Bwire Kezekia, the chairperson of the Clearing and Forwarding Association, challenged the Uganda Revenue Authority to scrutinise customs declarations and determine whether they support the contractor’s reported production capacity.
Kezekia said clearing agents experienced shortages of digital number plates between May and June, leaving some motorists waiting for as long as three months despite having paid the required taxes and fees.
The inquiry has also turned its attention to the project’s impact on Uganda’s manufacturing industry, particularly the decision to concentrate the supply and production arrangement in the hands of a single company.
Allan Ssenyondwa, the Director of Policy Research and Advocacy at the Uganda Manufacturers Association, said local manufacturers had previously cautioned Parliament about the potential economic consequences of treating the digital number plate programme solely as a security project.
Ssenyondwa said Uganda could allow other qualified manufacturers to participate in the programme while retaining the security, identification and tracking features required under the digital system.
He questioned the concentration of the project in one company, arguing that such an arrangement could weaken local manufacturing capacity and create supply challenges as the number of vehicles using digital plates increases.
Frank Mawejje, chairperson of the Union Transport Alliance, separately asked Parliament to investigate the ownership and operations of ITMS.
Mawejje said stakeholders still have questions about the company’s ownership structure and its specific role in implementing the digital number plate programme.
Mawejje also questioned the exclusion of local companies that had previously participated in number plate production, citing Tumpeco as an example and arguing that Ugandan manufacturers should have been given an opportunity to participate in the new system.
Mpaka said the committee would not base its findings solely on testimony presented during the hearing.
He said MPs would obtain records from government institutions, conduct field inspections and consult additional stakeholders before determining the project’s actual production capacity and financial implications.
Among the issues under investigation are the reported Shs106 billion tax revenue loss, the alleged Shs4 billion weekly revenue shortfall, digital number plate importation and production figures, the contractor’s stated production capacity, the effect of the project on local manufacturers and the financial arrangements surrounding ITMS.
“We are looking for a solution without entirely affecting the main principle, which is security,” Mpaka said.
He said the committee expects to obtain the necessary information within two weeks before preparing its report and recommendations for presentation to Parliament.
Uganda began rolling out digital number plates under the Intelligent Transport Monitoring System in 2023.
The programme was introduced to strengthen vehicle identification and tracking, support law enforcement and improve the management of motor vehicle registration and transport data.
The system was also intended to help authorities address vehicle theft and enhance monitoring of road users.
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