Uganda Revenue Authority (URA) has impounded over 100 buses belonging to Pioneer Easy Bus Company for failure to clear a sh8bn tax debt.
This has come after a series of reminders to the bus company to clear the cumulative debt since operation last year in most of Kampala suburbs.
URA manager in Charge of Debt Collection, Abudu-Sallam Waisswa said Pioneer buses directors failed to honour the memorandum of Understanding entered into in October last year which has forced the Authority to impound their buses.
Waiswa said Pioneer buses will not resume operation until the debt is cleared.
On his part, Pioneer Easy Bus Company director, John Masanda said they have entered into negotiations with URA and KCCA to forge a way forward.
The bus company started operations on March 12, taking advantage of a strike by taxi operators over the sh120, 000 monthly dues charged by KCCA.
Passengers have enjoyed lower fares charged by the buses, compared to those charged by taxis, which dominate the city’s public transport.
