Uganda Revenue Authority (URA) has told motor vehicle sellers to clear old vehicles in their stock by September 2018. The directive follows the enactment of the Traffic and Road Safety (Amendment) Act 2018, which banned the importation of vehicles older than 15-years.
The ban, which extended the age of cars exempted from the environmental levy to eight years from the original five years, comes into force on July 1, 2018. However, motor vehicles which are in transit before the commencement of the Act and which arrive in Uganda by September 30, 2018, will be accepted.
According to the Commissioner for Customs, Dickson Kateshumbwa, come October 1st, vehicles all passenger or goods vehicles, that are older than eight years and below 15-years, will pay a levy equivalent to 50 per cent of the value of the vehicle. This means that only vehicles manufactured after 2010 can be allowed in the country without paying the levy.
Kateshumbwa advises vehicle dealers to ensure that they clear all vehicles older than 15 years to avoid incurring losses. He says the exception will only be given to long haulage trucks, which include agricultural or forestry tractors; earth moving motor vehicles, compressing machines and road rollers. He was addressing taxpayers in Kampala on the 2018/19 national budget.
According to the government, the objective of stopping the importation of older vehicles is to protect the environment and the public against the dangers resulting from air pollution and reduce road accidents which are usually blamed on vehicles in Dangerous Mechanical Conditions. It’s also in line with a resolution by the East African Community Heads of State to reduce the importation of second-hand cars in a bid to develop the regional automotive industry.
According to Uganda Revenue Authority (URA), close to 80 percent of the motor vehicles imported in Uganda are older than 10 years.