Uganda has stopped importation of cars older than 15 years
to Africa from September 2018.
Dicksons Kateshumbwa , Uganda Revenue Authority Commissioner
for Customs, told that the importation of cars older than 15 years to Uganda
was stopped citing environmental reasons.
Kateshumbwa had said “If you are planning to import
used cars that are 15 years and above, you have up to September, after which
you will not be able. This is aimed at protecting the environment,”
He said after September, URA will commence
on the implementation of the new proposed Tax
measures for Non Tax Revenue for the Financial year
2018/2019.
Under the proposed measures, government intends to ban
imports of vehicles 15 years and above from the year of manufacture on
justification that it is aimed at protecting the environment from being
polluted by the heavy pollutants produced by such cars.
Kateshumbwa said URA is committed to ensuring that the
country’s environment is free from any kind of pollution especially that
emanating from second hand vehicles.
Among other proposed tax measure for Non Tax
Revenue for the financial year 2018/2019 that the tax agency will be
implementing include the increase on motor vehicles first
registration fees which has been pushed from UGX1.Million to UGX1.3
Million shillings.
In the financial year 2018/2019, government is looking at
mobilizing about Shs 16,358.8 Billion from Domestic Revenue Mobilization of
which Shs 15,938.8 Billion will be collected by URA as tax revenue and Shs 420
Billion as Non Tax Revenue.
It is however feared that the ban will lead to loss of jobs
since the industry has been employing many Ugandans especially the youth who
are the majority second hand car dealers.
Marvin Ayebale, the Secretary General of Association of
Motor Dealers in Uganda said any proposal to this effect should be done in
phases so as to allow Ugandans to adjust accordingly. He added that at the
moment many Ugandans cannot afford new cars.
“We are not against the government’s proposal of banning the
importation of second-hand cars but more time should be given to the dealers
since some have made orders for the vehicles from Japan and other countries. If
the government implements the proposal, car dealers will be affected,” he
explained.
Government under the new Traffic and Road Safety Act 1998
(Amendment) Bill, 2018 tabled before parliament, proposes that a person who
imports a motor vehicle which is five years old or more from the date of
manufacture shall pay an environmental levy on that vehicle.
The environmental levy shall be collected by the Uganda
Revenue Authority before clearance of the vehicle.
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